Kayak Company Uses a Job Order Costing System and Allocates

question 98

Multiple Choice

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,$30,000; direct materials,$50,000; and factory overhead applied $6,000.The predetermined overhead rate was:

• A)5.0%.
• B)12.0%.
• C)20.0%.
• D)500.0%.
• E)16.7%.

---

Definitions:

Sarcolemma

The cell membrane surrounding a muscle fiber, playing a crucial role in muscle contraction.

Acetylcholine Receptors

Protein receptors located in the neuro-muscular junction and various parts of the nervous system that bind acetylcholine, facilitating neurotransmission.

Motor End Plate

The specialized part of a muscle fiber membrane at a neuromuscular junction where a motor neuron applies its neurotransmitter.

Clavicle

A lengthy bone that functions as a support link between the scapula and the chest bone.