The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in May. The variable overhead rate is $770 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $139,680 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be: Multiple Choice $23.60 $7.70 $19.40 Multiple Choice $23.60 $7.70 $19.40 $27.10