The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,800 direct labor-hours will be required in August. The variable overhead rate is $8.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $140,400 per month, which includes depreciation of $24,940. 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:
$22.60
$8.10
$26.10
$18.00