The Manufacturing Overhead Budget at Polich Corporation Is Based on Budgeted

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in February. The variable overhead rate is $3.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All other fixed manufacturing overhead costs represent current cash flows.
-The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for February should be:

A) $3.40 per direct labor-hour
B) $21.10 per direct labor-hour
C) $17.70 per direct labor-hour
D) $18.80 per direct labor-hour