Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Required: a. For 2019, the companys cost accountant estimated that total overhead costs incurred would be $533,600 and that a total of 58,000 direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. (Round your answer to 2 decimal places.) b. A production run of 400 coffee mugs used raw materials that cost $500 and used 40 direct labor hours at a cost of $10.80 per hour. Calculate the cost of each coffee mug produced. (Do