Splish Brothers 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 non$-$custom model is called Luxury Base Frame. Normal production is $1,000$ 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 $870$ units were produced; $4,350$ direct labor hours were allowed for standard production, but only $4,000$ hours were used. Standard and actual overhead costs were as follows.

$\backslash$table$[[,\backslash$table$[[$Standard$],[$ units$)]],\backslash$table$[[$Actual$],[(870$ units$)]]],[$Indirect materials,$$9,500,$$$9,800$

Determine the overhead application rate