Chott Inc. estimated that overhead cost would total $$180,000$ for the current year. Management further estimated that under absolutely perfect conditions they could produce $25,000$ units. Under perfect conditions reduced by unavoidable operating interruptions, Chott can produce $23,000$ units. The product is expected to appeal to the public for approximately three years during which time Chott expects to sell a total of $60,000$ units. Because poor economic conditions are forecast for the upcoming year, Chott plans to produce only $18,000$ units.

What will Chott's overhead application rate be if Chott uses practical capacity?

a$.$ $$10\mathrm{.}00$

b$.$ $$7\mathrm{.}20$

c$.$ $$7\mathrm{.}83$

d$.$ $$9\mathrm{.}00$