Calculate overhead applied to production in each of the following situations.

Show all the workings in your answers.

1. Direct labour cost incurred is $45,000. Overhead is applied at a rate of 50% of

direct labour cost.

2. Overhead is applied at a rate of 120% of direct labour cost. Direct labour costs incurred are $335,000.

3. Conversion costs amount to $297,000. Overhead is applied at a rate of 80% of

direct labour cost.

4. Conversion costs amount to $462,500. Overhead is applied at a rate of 150%

of direct labour cost.