Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Cost Driver Cost Driver Activity Est. Overhead $ 85000 Orders 500 orders Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Setups Machine hours Parts Inspections 265500 1412500 1130000 265000 450 setups 125000 MH 1000000 parts 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is O $8.81 O $31.58 O $14.13 O $11.30