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Kayak 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
Kayak 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, $35,000; direct materlals, $55,000, and factory overhead applied $6,500. The overhead application rate was: Multiple Cholce 5.38%. 11.82%. 18.57%. 538.46%. 15.71%
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