It's indeed the layer type and okta, but in the remark the layer type is repeated for each reported cloud (smoke) layer. From your example:
FEW037 → FU1
SCT050 → FU2 → 1+2=3
OVC250 → FU5 → 3+5=8
The oktas of the layers are added, that's how OVC is shown as 5 and not 8, by adding the previous oktas it does become 8.
FEW = 1 to 2
SCT = 3 to 4
BKN = 5 to 7
OVC = 8
Similarly for CYCD:
METAR CYCD 012200Z 34010KT 12SM BKN038 BKN051 30/11 A3012
RMK FU5FU2 VIS LWR N-E SLP201 DENSITY ALT 1600FT=
BKN038 → FU5
BKN051 → FU2
When no remark is needed for the smoke (French: Fumée), the FU code is placed before the remark:
METAR CYBD 012200Z 29007KT 8SM FU FEW240 28/13 A3019
RMK CC1 SLP225 DENSITY ALT 1400FT=
According to Wikipedia, this is how Canada handles the remark section. Here is what navcanada.ca says:
Where observed, the obscuration and cloud type amount for each
reported layer is included in remarks. It may exceed 8 oktas if a higher
layer is observed through transparencies in a lower layer
(Emphasis mine.)