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Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting

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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 $534,660 Number of setups 670 Ordering costs 330,600 Number of orders 17,400 Machine costs 932,800 Machine hours 42,400 Receiving 403,200 Receiving hours 9,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $625,000 $812,000 Direct labor 457,000 487,000 Units completed 16,500 8,700 Direct labor hours 6,600 1,500 Number of setups 440 230 Number of orders 5,600 11,800 Machine hours 23,600 18,800 Receiving hours 3,600 6,000 The company's normal activity is 8,100 direct labor hours.

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