Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.

Activity Cost Pool	Cost Driver	Est. Overhead		Cost Driver Activity
Ordering and Receiving	Orders	$ 125000		500 orders
Machine Setup	Setups	301500		450 setups
Machining	Machine hours	1525000		125000 MH
Assembly	Parts	1210000		1000000 parts
Inspection	Inspections	305000		500 inspections

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

$ 34.67.

$ 9.78.

$ 15.25.

$ 12.10.