Question 1 Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,240 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 1,120s were produced; 5,600 direct labor hours were allowed for standard production, but only 5,000 hours were used. Standard and actual overhead costs were as follows. Standard (1,240 units) Actual (1,120 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes 15,800 56,600 29,600 17,100 35,500 13,100 3,300 10,500 3,900 2,000 920 660 390 $189,370 $ 16,200 67,100 28,900 16,400 32,900 13,100 3,300 10,500 3,900 2,000 1,840 660 390 $197,190 office employees salaries Total Your answer is correct. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 30.54 per direct labor hour Attempts: 1 of 3 used