Exhibit 1 The following is the budget of Superb Engineering Works for the year 2017 Factory overheads $62,000 Direct labour cost $ 98,000 Direct labour hours 155,000 Machine hours 50,000 Actual labour hours were 40,000 Actual machine hours were 30,000 Actual direct labour costs were $50,000 Actual direct material costs were $45,000 Required a) Determine the overhead application rate on the basis of i. Direct labour hours ii. Direct labour cost iii. Machine hours, and iv. Overhead costs v. Production cost