ayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $39,000; direct materials, $59,000; and factory overhead applied $6,900. The overhead application rate was:

Multiple Choice

• 5.65%.

• 11.69%.

• 17.69%.

• 565.22%.

• 15.13%.