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	$452,580	Number of setups	570
Ordering costs	300,900	Number of orders	17,700
Machine costs	882,000	Machine hours	42,000
Receiving	422,300	Receiving hours	10,300

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

	Model A	Model B
Direct materials	$591,000	$801,000
Direct labor	$494,000	$468,000
Units completed	15,800	8,000
Direct labor hours	6,200	1,500
Number of setups	360	210
Number of orders	5,400	12,300
Machine hours	23,800	18,200
Receiving hours	3,000	7,300

The company's normal activity is 7,700 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.

	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?