A. The JCA company produces two models of a product: Standard and Deluxe. The following information relates to the costs, drivers and activities associated with both models. Total expected indirect costs are $80,000

Model	Number of Runs	Number of Components	Direct Labor Hours
Standard	3	30	650
Deluxe	7	50	150
Indirect costs per activity	$20,000 (runs)	$60,000 (components)	$80,000 (total)

Required

A) Assume that the $80,000 of indirect costs are allocated based on direct labor hours (MOD) - traditional system A1) Determine the total indirect cost assigned to the Standard model A2) Determine the total indirect cost assigned to the Deluxe model.

B) Assume that the number of runs and components are used as drivers in an ABC system, and costs are assigned by activity. B1) Determine the total indirect cost assigned to the Standard model B2) Determine the total allocated indirect cost of the Deluxe model