Krispy Creme uses a job order costing system and allocates its overhead based on direct labor costs. Kripsy Creme's production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied $6,000. The overhead application rate was: 500.0% 12.0%. O 16.7%. 5.0%. 20.0%. Previous Next UL