KAP Manufacturing provided the following information from its accounting records for 2017: Expected production 60,000 labor hours Actual production 56,000 labor hours Budgeted overhead $900,000 Actual overhead $870,000 How much is the overhead application rate if KAP bases the rate on direct labor hours? (Points : 2)

$14.50 per hour $15.00 per hour $15.54 per hour $16.07 per hour