Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019:

Denominator volume—number of units 8,000 Denominator volume—percent of capacity 80%Denominator volume—standard direct labor hours (DLHs) 24,000 Budgeted variable factory overhead cost at denominator volume$103,200 Total standard factory overhead rate per DLH$15.10

During 2019, Bluecap worked 28,000 DLHs and manufactured 9,600 units. The actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 9,000 units at a budgeted total of 27,000 DLHs.
The standard variable overhead application rate per direct labor hour in 2019 for Bluecap Co., to two decimal places, was:

$4.30

Standard variable overhead application rate/DLH = budgeted variable overhead at denominator volume/denominator volume, expressed in terms of DLHs = $103,200 (given)/24,000 DLHs (given) = $4.30/DLH (to two decimal places).