Marigold Corp. provided the following information from its accounting records for 2019.

Expected production	100000 labor hours
Actual production	96000 labor hours
Budgeted overhead	$700000
Actual overhead	$670000

How much is the overhead application rate if Marigold Corp. bases the rate on direct labor hours?

$6.98 per hour

$6.70 per hour

$7.29 per hour

$7.00 per hour