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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
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 $487,320 Number of setups 620 Ordering costs 382,000 Number of orders 19,100 Machine costs 854,000 Machine hours 42,700 Receiving 393,600 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 $569,000 $772,000 Direct labor 463,000 451,000 Units completed 16,900 7,000 Direct labor hours 6,800 1,500 Number of setups 390 230 Number of orders 6,500 12,600 Machine hours 24,500 18,200 Receiving hours 3,300 6,300 The company's normal activity is 8,300 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.
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