Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $810,000 of overhead during the next period, and expects to use 51,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?

• 6.30%.
• 63.0%.
• 159%.
• 1588%.
• 67%.