World Company expects to operate at 90% of its productive capacity of 28, 000 units per month. At this planned level, the company expects to use 16, 380 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 90% capacity level, the total budgeted cost includes $32, 760 fixed overhead cost and $147, 420 variable overhead cost. In the current month, the company incurred $199, 125 actual overhead and 15, 950 actual labor hours while producing 27, 500 units. (Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.) (1) Compute the overhead application rate for total overhead. (2) Compute the total overhead variance