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 $483,000. 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 40,000 units of Big Z and 17,000 units of Little Z next year.

	Direct Material per Unit			Direct Labor Dollars per Unit
Big Z	$	14		$	15
Little Z	$	20		$	10

What are total estimated direct labor hours for this next year?

Multiple Choice

• 1,110,000 total DLH.

• 770,000 total DLH.

• 340,000 total DLH.

• 38,500 total DLH.

• 1,425,000 total DLH.