Letena Plc Ltd. is developing their manufacturing overhead budget for July, which is based on budgeted direct labor hours. The variable overhead rate is $4.40 per direct labor hour and 13,387 direct labor hours are budgeted for July. Fixed manufacturing overhead is budgeted at $151,000. All overhead costs are current cash flows except for $30,200 of depreciation.

The predetermined overhead rate every month is recomputed every month. What should the predetermined overhead rate for July be?

Select one:

A. $15.68

B. $20.30

C. $4.40

D. $22.56

E. $6.66