National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 10, 800 16,800 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High F Great P Direct materials $38.80 $26.20 Direct labor $18.40 $14.00 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,560 engineering hours 12,990 inspection hours 33,870 machine hours 26,550 direct labor hours $ 409,600 271,320 540.800 132,400 $1,354, 120 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: Engineering and design hours Quality control inspection hours Machine hours Labor hours Great High FP 1,040 1,520 5,720 7,270 20,360 13,510 12,080 14,470 What is the overhead application rate using the firm's volume-based costing system? (Rounded to the nearest percent or cents.) Multiple Choice 0 3 12 percent of direct labor cost. O $51.79 per direct labor-hour. O 70.5 percent of direct labor cost 0 5,179 percent of direct labor cost. 0 5,100 percent of direct labor cost