Cameron Carts produces three models of push carts, the Economy, the Standard, and the Deluxe. Data on
operations and costs for the month are:
Economy Standard Deluxe Total
Machine Hours 8,000 16,000 8,000 32,000
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Direct labor hours 4,000 12,000 8,000 24,000
Units Produced 8,000 4,000 1,000 13,000
Direct Material Costs $100,00 $80,00 $30,000 $210,000
Direct Labor Costs 200,00 262,000 138,000 600,000
Manufacturing Overhead Costs 684,000
Total Costs $1,494,000
Compute the total cost for each model, assuming Cameron Carts uses:
(a) direct labor hours to allocate overhead costs;
(b) direct labor costs to allocate overhead costs; and
(c) machine hours to allocate overhead costs.