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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, $20,000; direct materials, $40,000; and factory overhead applied $5,000. The predetermined overhead rate was:
A. 25.00%
B. 20.00%
C. 12.50%
D. 400.00%
E. 4.00%
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