Fill in the Blanks & Answer the last question !

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1. Multiple Versus Single Overhead Rates, Activity Drivers

   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	$492,880	Number of setups	610
   Ordering costs	342,000	Number of orders	17,100
   Machine costs	748,800	Machine hours	41,600
   Receiving	349,200	Receiving hours	9,700

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

   	Model A	Model B
   Direct materials	$558,000	$807,000
   Direct labor	486,000	467,000
   Units completed	16,800	7,100
   Direct labor hours	5,100	2,200
   Number of setups	370	240
   Number of orders	5,900	11,200
   Machine hours	24,600	17,000
   Receiving hours	2,700	7,000

   The company's normal activity is 7,300 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 the 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? Direct Labor Hours or Four Activity Drivers