The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor-hours will be required in May. The variable overhead rate is $7.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $151,500 per month, which includes depreciation of $24,910. 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 $7.70 $24.40 O $27.90 $20.20