Golebiewski Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 4,900 direct labor hours will be required in November. The variable overhead rate is $8.40 per direct labor hour. The company s budgeted fixed manufacturing overhead is $78,400 per month, which includes depreciation of $10,290. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for November should be: a. $22.30 b. $16.00 c. $24.40 d. $8.40
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