A company allocates $7.50 overhead to each unit produced. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2? 38. Estimated: $74.358 6,610 DLH 700 MH Manufacturing overhead cost: Direct labor hours ? DLH Machine hours 800 MH A. 9,914 DLH B. 6,612 DLH C. 3,109 DLH D. 7,454 DLH E. 16,254 DLH 39. A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be: A. $65,000. B. $90,000. C. $125,000 D. $215,000. E. $275,000 40. Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? A. 1,120. B. 8,214. C. 11,200. D. 12,320. E. 14,080 P. 12