The comparative applies overhead based on direct labor hours. The estimated direct labor hours for next year are 16,000 hours.

Particulars	Amount
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
Depreciation-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

Compute the overhead application rate that will be used to apply overhead during the next year.

Please do not copy from Chegg. I need an original answer with a proper explanation with step by step explanation.