The manufacturing overhead budget at Pendley Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,850 direct labor-hours will be required in August. The variable overhead rate is $4.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $168,150 per month, which includes depreciation of $34,515. 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:

a. $4.90

b. $20.00

c. $23.90

d. $19.0