Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $770,000 of overhead during the next period, and expects to use 47,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?

Multiple Choice

• 164%.
• 1638%.
• 61.0%.
• 66%.
• 6.10%.