Kamper Company Sells Two Products Big Z and Little Z

question 99

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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Definitions:

Relative Prices

The price of one good or service compared to another, usually considered in terms of opportunity cost.

Price Of X

The amount of money required to purchase a unit of product X in a market.

Entire Income

This term does not correspond to a specific economic concept; it might refer to total earnings or revenue of an individual or entity, but more context is needed for a precise definition. NO.

Uglifruits

A type of citrus fruit known for its unique appearance but sweet and tangy taste.