Kamper Company Sells Two Products Big Z and Little Z

question 90

Multiple Choice

Kamper Company sells two products Big Z and Little Z. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $475,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 32,000 units of Big Z and 9,000 units of Little Z next year. What are total estimated direct labor hours for this next year?

• A) 30,800 total DLH.
• B) 616,000 total DLH.
• C) 300,000 total DLH.
• D) 1,025,000 total DLH.
• E) 916,000 total DLH.

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