COST ACCOUNTING - please round where required. Thanks!!

Exercise 4.15 (Algorithmic)

Multiple Versus Single Overhead Rates, Activity Drivers

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:

Activity	Expected Cost	Activity Driver	Activity Capacity
Setting up equipment	$447,150	Number of setups	550
Ordering costs	367,500	Number of orders	17,500
Machine costs	725,900	Machine hours	42,700
Receiving	408,500	Receiving hours	9,500

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

	Model A	Model B
Direct materials	$558,000	$829,000
Direct labor	$471,000	$482,000
Units completed	15,500	8,200
Direct labor hours	7,000	2,100
Number of setups	380	170
Number of orders	5,700	11,800
Machine hours	24,100	18,600
Receiving hours	2,300	7,200

The company's normal activity is 9,100 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.

	Unit Cost
Model A	$ BLANK ANSWER
Model B	$ BLANK ANSWER

2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.

	Unit Cost
Model A	$ BLANK ANSWER
Model B	$ BLANK ANSWER