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	$500,960	Number of setups	620
Ordering costs	392,700	Number of orders	18,700
Machine costs	867,300	Machine hours	41,300
Receiving	331,200	Receiving hours	9,200

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

	Model A	Model B
Direct materials	$556,000	$808,000
Direct labor	462,000	459,000
Units completed	16,200	7,100
Direct labor hours	6,300	2,100
Number of setups	380	240
Number of orders	6,000	12,700
Machine hours	23,900	17,400
Receiving hours	3,100	6,100

The company's normal activity is 8,400 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

3. Which method produces the more accurate cost assignment?

Direct labor hoursFour activity drivers