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	$501,760	Number of setups	640
Ordering costs	384,000	Number of orders	19,200
Machine costs	913,000	Machine hours	41,500
Receiving	323,700	Receiving hours	8,300

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

	Model A	Model B
Direct materials	$647,000	$773,000
Direct labor	$486,000	$451,000
Units completed	16,200	7,500
Direct labor hours	5,100	1,800
Number of setups	450	190
Number of orders	6,500	12,700
Machine hours	23,100	18,400
Receiving hours	2,000	6,300

The company's normal activity is 6,900 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	$
Model B	$

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

	Unit Cost
Model A	$
Model B	$

3. Which method produces the more accurate cost assignment?