12. Dale Company applies overhead using a pre-determined overhead rate based on the direct labour cost. At the beginning of the year, it was estimated that there will be 20,000 direct labour hours worked and that labour will be paid $20 per hour. Total overhead is estimated to be $500,000 for the year. What is the overhead application rate to be used for the year? A. 80% of direct labour cost B. 125% of direct labour cost C. $20 per direct labour hour D. $125 per direct labour hour E. $25 per direct labour hour