Edwards Auto Body Uses a Job Order Cost System

Multiple Choice

Edwards Auto Body uses a job order cost system.Overhead is applied to jobs on the basis of direct labor hours.During the current period,Job No.337 was charged $425 in direct materials,$475 in direct labor,and $190 in overhead.If direct labor costs an average of $16 per hour,the company's overhead application rate is:

A) $7.27 per direct labor hour.
B) $6.40 per direct labor hour.
C) $17.50 per direct labor hour.
D) $40 per direct labor hour.