My question is: Sleney Company applies overhead on the basis of direct labor dollars, using a rate of $1.65 per labor dollar. How much overhead would be applied to products in January if $18,600 of labor costs were incurred and 2,200 labor hours were worked? I am not exactly sure what they are asking or how to analyze this question. My choices are: a) $3,630 b) $40,920 c) $30,690 d) $18,600