Calculate the cost of civilian and military version of Model KV10 using both direct labor dollars and machine hours as alternative allocation bases.

Civilian Military

Direct material $3,000 $3,500

Direct labor $900 $1,200

Machine Hrs $100 $100

At the start of the year Pelton estimates that the company will incurr $75,000,000 of overhead, 7,500,000 of direct labor and 750,000 machine hours. Consider the Nodel KV10 gauge that is produced civilian and military. Sales to the military are generally on a cost-plus-profit basis with profit equal to 10% of cost.