Dragon Fire Hot Sauce makes two types of hot sauces--meek and mild. Budgeted information for the two flavors appears below:

Meek:

Sales $600,000

Direct Materials $100,000

Direct Labor Cost $108,000

Labor Hourly Cost $12.00

Mild:

Sales $400,000

Direct Materials $120,000

Direct Labor Cost $180,000

Labor Hourly Cost $12.00

The company estimates it will incur $345,600 in overhead costs for the period. Dragon Fire allocates overhead cost to products based on the labor hours worked on each product. What is the overhead application rate to be used when allocating to Meek?