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	$428,220	Number of setups	540
   Ordering costs	400,200	Number of orders	17,400
   Machine costs	906,400	Machine hours	41,200
   Receiving	444,400	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	$556,000	$838,000
   Direct labor	$484,000	$469,000
   Units completed	16,600	9,000
   Direct labor hours	6,500	2,500
   Number of setups	360	180
   Number of orders	5,500	11,900
   Machine hours	24,100	17,100
   Receiving hours	3,600	6,500

   The company's normal activity is 9,000 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?

   Direct labor hoursFour activity drivers