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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
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 $442,750 Number of setups 550 Ordering costs 380,600 Number of orders 17,300 Machine costs 846,000 Machine hours 42,300 Receiving 378,400 Receiving hours 8,800 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $631,000 $801,000 Direct labor $496,000 $481,000 Units completed 15,200 8,600 Direct labor hours 6,300 2,000 Number of setups 400 150 Number of orders 5,700 11,600 Machine hours 23,500 18,800 Receiving hours 2,500 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. 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
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