Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $336,000; materials of $400,000 and direct labor of $210,000. During the year Adams incurred $408,000 in materials costs, $414,300 in overhead costs and $214,000 in direct labor costs. Compute the overhead application rate. 160%. 194%. 63%. 84%. 190%.