The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $6,884 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,600 and direct labor cost of $1,400. Therefore, the company's overhead application rate is:

Multiple Choice

111% of direct labor cost.

186% of direct labor cost.

206% of direct labor cost.

49% of direct labor cost.

54% of direct labor cost.