National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

Model	Annual Sales in Units
High F	10,400
Great P	16,400

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	$	38.40		$	25.80
Direct labor	$	18.00		$	13.60

Budget factory overhead:
Engineering and Design	2,480	engineering hours	$	434,000
Quality Control	12,910	inspection hours		309,120
Machinery	33,790	machine hours		540,160
Miscellaneous Overhead	26,470	direct labor hours		132,200
Total			$	1,415,480

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:

	High F	Great P
Engineering and design hours	1,000	1,480
Quality control inspection hours	5,680	7,230
Machine hours	20,320	13,470
Labor hours	12,040	14,430

What is the overhead application rate using the firm's volume-based costing system?