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Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity $476,720 Number of
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity $476,720 Number of setups Activity Setting up equipment Ordering costs Machine costs Receiving Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Receiving hours Required: Model A 370,500 Model B 866,000 371,000 Model A Model B Model A Number of orders Machine hours $551,000 Unit Cost 450,000 16,200 Unit Cost 6,500 430 6.900 Model B 24,300, 2,700 The company's normal activity is 8,000 direct labor hours. $756,000 497,000 8,000 1,500 160 12,600 19,000 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. 590 7,900 19,500 43,300 10,600 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.
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