Maybe this will help. I have 2 Predator engines, a hemi and a non-hemi. We're allowed to add a header/muffler combo, an air filter/adapter assembly, change the jet in the carb, and remove the governor.
The hemi engine peak hp is at 5000 rpm and peak torque is at 4900 rpm. The non-hemi peak hp is at 5600 rpm and the peak torque is at 5000 rpm. After those plateaus, the hp and torque numbers drop off significantly. In addition, the engine builder doesn't recommend turning the stock flywheels more that 5500 rpm.
The trick here (if which I am still attempting to achieve) is to gear the kart where I'm reaching these peak hp and torque numbers without exceeding them. Once the kart hits the track, the gear swapping will begin to determine where I need to be.
I would imagine a big part of this equation is determining on a dyno where your engines hp and torque "sweet spots" are.
Good luck !