Exercise $8-5($Algo$)$ Manufacturing Overhead Budget $[$LO$8-6]$

Yuvwell Corporation's direct labor budget for next year contained the following information:

The company uses direct labor$-$hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $$7\mathrm{.}00$ per direct labor$-$hour and its total fixed manufacturing overhead is $$88,000$ per quarter. The only noncash item included in fixed manufacturing overhead is depreciation of $$22,000$ per quarter.

Required:

Prepare the company's manufacturing overhead budget for next year.

Compute the company's predetermined overhead rate $($including both variable and fixed manufacturing overhead$)$ for next year.