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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 $410.550 Number of setups 510 Ordering costs 427,800 Number of orders 18 600 Machine costs 928,400 Machine hours 42 200 Receiving 373,700 Receiving hours 10 100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands Model A Model B Direct materials $555,000 $811.000 Direct labor 487.000 490,000 Units completed 16,700 7,700 Direct labor hours 6,100 2,300 Number of setups 350 160 Number of orders 6,100 12,500 Machine hours 123,400 18,800 Receiving hours 4,000 6,100 The company's normal activity is 8,400 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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