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Barton Carts Produces Two Models of Push Carts, the Standard

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Essay

Barton Carts produces two models of push carts, the Standard and the Deluxe. Data on operations and costs for the month are:
 Standard Deluxe  Total  Machine hours 16,0008,00024,000 Direct labor hours 12,0008,00020,000 Units produced 4,0001,0005,000 Direct material costs 80,000$30,000$110,000 Direct labor costs 262,000138,000400,000 Manufacturing overhead costs557,400 Total costs$1,067,400\begin{array}{lrrr}&\text { Standard} & \text { Deluxe } & \text { Total }\\ \text { Machine hours } & 16,00 0& 8,000 & 24,000 \\\text { Direct labor hours } & 12,000 & 8,000 & 20,000 \\\text { Units produced } &4,000 & 1,00 0 & 5,000\\\text { Direct material costs } & 80,000 &\$ 30,000& \$ 110,000 \\\text { Direct labor costs } & 262,000&138,000&400,000\\\text { Manufacturing overhead costs}&&&557,400\\\text { Total costs}&&&\$1,067,400\end{array}



Required:
Compute the total cost for each model, assuming Barton Carts uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.

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Definitions:

Reaction Pathway

The sequence of chemical reactions or steps leading from reactants to products, illustrating the process and intermediates formed.

Likely Products

The most probable substances formed as the outcome of a chemical reaction, based on reactants and conditions.

Predominate Product

The product in a chemical reaction that is formed in greater quantity compared to any other products, often due to its more favorable energy state or kinetic pathway.

Unsaturation Number

A measure of the degree of unsaturation (number of double or triple bonds, including rings) present in an organic molecule.

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