The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,500 direct labor-hours will be required in May. The variable overhead rate is $8.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $122,200 per month, which includes depreciation of $24,920. All other fixed manufocturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overheod rate for May should be: Multiple Choice $2730 $2420 \$18 80 5890