Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $284,700; materials of $409,000 and direct labor of $219,000. During the year Hancock incurred $417,000 in materials costs, $413,100 in overhead costs and $223,000 in direct labor costs. Compute the overhead application rate.

A 186%.

B 77%.

C 70%.

D 185%.

E 130%.