World company expects to operate at 80% of its productive capacity of 57,500 units per month. at this planned level, the company expects to use 25,300 standard hours of direct labor. overhead is allocated to products using a predetermined standard rate of 0.550 direct labor hours per unit. at the 80% capacity level, the total budgeted cost includes $70,840 fixed overhead cost and $298,540 variable overhead cost. in the current month, the company incurred $368,000 actual overhead and 22,300 actual labor hours while producing 43,000 units.

Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be: