Par Golf Equipment Company produces two types of golf bag: the standard and deluxe models. The total indirect cost to be allocated to the two bags is $35,000. Determine the net revenue that Par Golf can expect from the sale of each bag.

(a) Use direct-labor cost to allocate indirect costs.

(b) Use direct-materials cost to allocate indirect costs.

Data Item                                Standard                     Deluxe 

Direct-labor cost                     $50,000                       $65,000

Direct-material cost                  35,000                         47,500

Selling price                                       60                                95

Units produced                            1800                            1400