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 10,000 Great P 16,000 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 $38.00 $25.40 materials $17.52 $13.14 Direct labor Budget factory overhead: $404,712 269,808 Engineering and Design 2,409 engineering hours Quality Control 12.848 inspection hours Machinery 33,726 machine hours 539,616 26,400 direct labor Miscellaneous Overhead 134,904 hours Total $1,349,040 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 Engineer ing and design hours Quality control inspection 969 1,440 5,648 7,200 hours Machine hours 20,286 13,440 12,000 14,400 Labor hours What is the overhead application rate using the firm's volume-based costing system (rounded to the nearest percent or cents)? O 68 per cent of direct labor cost. O 5,110 percent of direct labor cost. O 5,189 percent of direct labor cost. O $51.89 per direct labor-hour. O 350 percent of direct labor cst