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Q) ABC Company produces two types of cars: the standard and deluxe models. The total indirect cost to be allocated to the two car


Q) ABC Company produces two types of cars: the standard and deluxe models. The total indirect cost to be allocated to the two car is 35,000,000 units. Determine the net ABC company can expect from the sale of each car. (a) Use direct-labor cost to allocate indirect costs. (b) Use direct-materials cost to allocate indirect costs All Values in 000's (thousands) (1 unit value = 703000) %3D Data Item Standard Deluxe Direct-labor cost 50,000 65,000 www Direct-material cost 35,000 47,500 Selling price 60 95 Units produced 1800 1400

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