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	$463,980	Number of setups	570
Ordering costs	380,000	Number of orders	19,000
Machine costs	784,700	Machine hours	41,300
Receiving	346,500	Receiving hours	9,900

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

	Model A	Model B
Direct materials	$581,000	$833,000
Direct labor	$464,000	$480,000
Units completed	15,200	7,000
Direct labor hours	5,300	2,500
Number of setups	350	220
Number of orders	6,500	12,500
Machine hours	24,300	17,000
Receiving hours	2,000	7,900

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	$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?