The manufacturing overhead budget at Pendley Corporation is based on budgeted labor-hours. The direct labor budget indicates that 6,000 direct labor-hours will be required in August. The variable overhead rate is $8.40 per direct labor- hour. The company's budgeted fixed manufacturing overhead is $109,800 per month, which includes depreciation of $24,970. 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. $8.40 B. $18.30 C. $26.70 D. $23.20