For the year, D Corporation estimated manufacturing overhead to be $310,000. Actual manufacturing overhead was $306,900. Estimated direct labor hours were 12,400. Actual direct labor hours were 15,500. Using this information, which of the following would be the companys overhead application rate based on direct labor hours?

Group of answer choices

$20.00 per labor hour

$25.00 per labor hour

$19.80 per labor hour

$24.75 per labor hour

$22.28 per labor hour