A firm estimates overhead of 400,000 and direct labour of 200,000. Applied overhead per labour dollar is:

1. Divide estimated overhead by the estimated activity base. 2. 400,000 divided by 200,000 gives two. 3. That is 2.00 of overhead for each 1.00 of direct labour. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._