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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 $482,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $25 per hour and the company expects to manufacture 39,000 units of Big Z and 16,000 units of Little Z next year.
Direct Material per Unit Direct Labor Dollars per Unit
Big Z...............................................$13.......................................$19
Little Z.............................................$19.......................................$15
What are total estimated direct labor hours for this next year?
39,240 total DLH.
981,000 total DLH.
526,316 total DLH.
1,870,000 total DLH.
1,507,316 total DLH.
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