Question
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
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 $541,280 Number of setups 680 Ordering costs 374,000 Number of orders 17,000 Machine costs 894,600 Machine hours 42,600 Receiving 395,200 Receiving hours 10,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $610,000 $783,000 Direct labor $470,000 $496,000 Units completed 15,500 8,700 Direct labor hours 5,500 1,600 Number of setups 450 230 Number of orders 5,700 11,300 Machine hours 24,900 17,700 Receiving hours 3,900 6,500 The company's normal activity is 7,100 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 $fill in the blank 1 Model B $fill in the blank 2 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A $fill in the blank 3 Model B $fill in the blank 4
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