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	$455,430	Number of setups	570
Ordering costs	332,500	Number of orders	17,500
Machine costs	834,000	Machine hours	41,700
Receiving	399,000	Receiving hours	11,400

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

	Model A	Model B
Direct materials	$607,000	$758,000
Direct labor	$479,000	$475,000
Units completed	15,500	7,400
Direct labor hours	6,300	1,500
Number of setups	420	150
Number of orders	6,000	11,500
Machine hours	23,200	18,500
Receiving hours	3,800	7,600

The company's normal activity is 7,800 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?