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, $32,000; direct materials, $52,000; and factory overhead applied $6,200. The predetermined overhead rate was:

Multiple Choice

• 16.25%.

• 516.13%.

• 11.92%.

• 19.38%.

• 5.16%.