The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6.200 direct labor-hours will be required in May. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,700 per month, which includes depreciation of $24,950. 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 $18.50 $2710 $23.60 $8.60