The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,500 direct labor-hours will be required in August. 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 manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

Multiple Choice

• $27.70

• $24.20

• $18.80

• $8.90