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Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $520,960 Number of setups 640 Ordering costs 316,200 Number of orders 18,600 Machine costs
Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $520,960 Number of setups 640 Ordering costs 316,200 Number of orders 18,600 Machine costs 826,500 Machine hours 43,500 Receiving 318,200 Receiving hours 8,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $584,000 $791,000 Direct labor 497,000 450,000 Units completed 15,500 8,900 Direct labor hours 5,000 1,700 Number of setups 420 220 Number of orders 6,800 11,800 Machine hours 24,500 19,000 Receiving hours 2,500 6,100 The company's normal activity is 6,700 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Model A Model B Unit Cost 1,479,00 X 502,860 X 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A 165.16 X Model B 195.94 X
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