The manufacturing overhead budget at Pandey 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 $122, 200 per month, which includes depredation of $24, 920 All other fixed manufacturing overhead costs represent current cash flows. The company recomputed its predetermined overhead rate every month. The predetermined overhead rate for August should be: $18.80 $8.90 $27.70 $24.20