The manufacturing overhead budget at Levetron Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,600 direct labor-hours will be required in August. The variable overhead rate is $10.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $160,820 per month, which includes depreciation of $26,400. 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 $18.70 $10.10. $25.73 $28.80