The Manufacturing Overhead Budget at Latronica Corporation Is Based on Budgeted

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours.The direct labor budget indicates that 7,100 direct labor-hours will be required in August.The variable overhead rate is $8.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $132,770 per month,which includes depreciation of $24,850.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) $8.60
B) $27.30
C) $23.80
D) $18.70