On January 1, 20x2, Clark Company had a balance of $25433 in its work-in-process account. On January 31, 20x2, the ending balance in the account was $54601. The company manages inventories on a FIFO basis. The following journal entries made to certain accounts describe the total costs incurred for work performed on jobs worked on in the month:

	Direct materials	$55041	Cr.
	Wages payable (direct labour used in production)	263713	Cr.
	Finished goods	436316	Dr.

The company applies overhead as a percentage of direct labour cost. What is the overhead application rate used by Clark?

Select one:

a. 74.9%

b. 55.6%

c. 165.5%

d. 109.8%