Canoe Company Uses a Job Order Cost Accounting System and Allocates

question 160

Multiple Choice

Canoe Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. Canoe Company'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:

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

---

Definitions:

Explanations

Statements or accounts that make something clear or understandable by describing the reasons or causes.

Digital Media Services

Services that provide content or activities through digital platforms such as the internet, including streaming, social media, and online marketing.

Persuasive Claim Message

A communication intended to assert a viewpoint in a way that convinces others of its validity or value.

Promised Rebate Package

A commitment to return a portion of the purchase price to the consumer as an incentive or reward after a product is bought.