Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $860,000 of overhead during the next period, and expects to use 56,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?

a. 70%

b. 65.1%

c. 1536%

d. 6.51%

e. 154%