Taperno Manufacturing Company has made the following cost estimates for next year: Direct Labor $90,000 Direct materials 72,000 Indirect labor 19,200 Indirect materials 8,400 Depreciation - factory building 8,200 Depreciation - factory machinery 4,200 Depriciation - office equipment 500 Factory utilities 4,900 Factory property taxes 3,100 Selling expenses 25,000 Miscellaneous overhead costs 5,600 General and administrative expenses 19,000 The company applies overhead based on direct labor hours. The estimated direct labor hours for next year are 16,000 hours. Compute the overhead application rate that will be used to apply overhead during the next year Please show work