The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,400 direct labor-hours will be required in August. The variable overhead rate is $8.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $119,680 per month, which includes depreciation of $24,930. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

$8.80

$24.00

$27.50

$18.70