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17-37 Par Golf Equipment Company produces two types of golf bag: the standard and deluxe models. The total indirect cost to be allocated to the
17-37 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 Direct-labor cost Direct-material cost Selling price Units produced Standard Deluxe $60,000 $%70,000 47,500 105 1400 40,000 70 1800
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