1. The manufacturing overhead budget at Latronica Corporation isbased on budgete

1. The manufacturing overhead budget at Latronica Corporation isbased on budgeted direct labor-hours. The direct labor budgetindicates that 6600 direct labor-hours will be required in August.The variable overhead rate is $7.10 per direct labor-hour. Thecompanys budgeted fixed manufacturing overhead is $138600 permonth which includes depreciation of $24910. All other fixedmanufacturing overhead costs represent current cash flows. Thecompany recomputes its predetermined overhead rate every month. Thepredetermined overhead rate for August should be: