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, $36,000; direct materials, $56,000; and factory overhead applied $6,600. The predetermined overhead rate was:

Multiple Choice

• 5.45%.

• 11.79%.

• 18.33%.

• 545.45%.

• 15.56%.