Honeywell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Estimated Overhead Cost Driver Activity $21,700 500 orders Ordering and Receiving Orders Machine Setup Setups $31,300 450 setups Machining Machine hours $44,500 125,000 hours Assembly Parts $47,600 1,000,000 parts 500 inspections Inspection Inspections $35,200 Overhead is applied using traditional costing based on direct labor hours. What is the overhead application rate? $0.45 $1.27 $1.80 $0.22