Question 1-2 Kampar 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 plant wide 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? 30, 800 total DLH. 616,000 total DLH. 300,000 total DLH. 1, 025,000 total DLH. 916,000 total DLH. The following data relates to Sprier Company's estimated amounts for next year. What is the company's plant wide overhead rate if direct labor hours are the allocation base? (Round to two decimal places.) $3.31 per direct labor hour. $3.43 per direct labor hour. $2.04 per direct labor hour. $30 per direct labor hour. $50 per direct labor hour. Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A based on direct labor hours in Department B2B and machine hours in Department C3C.

KC1ZQN The Asker · Accounting
1-2  Kampar 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 plant wide overhead rate with direct labor hours as its allocation base. Next year&qpos;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?  30, 800 total DLH.  616,000 total DLH.  300,000 total DLH.  1, 025,000 total DLH.  916,000 total DLH.  The following data relates to Sprier Company&qpos;s estimated amounts for next year.  What is the company&qpos;s plant wide overhead rate if direct labor hours are the allocation base? (Round to two decimal places.)  $3.31 per direct labor hour.  $3.43 per direct labor hour.  $2.04 per direct labor hour.  $30 per direct labor hour.  $50 per direct labor hour.  Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A based on direct labor hours in Department B2B and machine hours in Department C3C.
Community Answer

SolutionDirect labour hour needed for 1 unit:Big Z=(1//$20)xx17=.85 hour per unitLittle Z=(1//20)xx8=.40 hour per unit.Direct labour hou ... See the full answer