OAR – Role of Budgeted Labor Cost

I came across a question. If budgeted overheads are $450,000 and budgeted labor cost is $200,000 then calculate absorption rate on the basis of labor cost.

I calculated this in percentage.

$450,000 / $200,000 = 2.25 $

$2.25 * 100 = 225 % of direct labor cost

The correct answer is 225 % of direct labor cost.

But I don’t quite understand this. Why doesn’t the question provide a level of activity such as budgeted labor hours. And now that it has provided us with labor cost, what is the relationship between labor cost and labor hours? Why are we calculating this answer as a percentage?

Thank you for your help!