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 $497,240 Number of setups 620 Ordering costs 345,600 Number of orders 19,200 Machine costs 941,600 Machine hours 42,800 Receiving 445,500 Receiving hours 9,900 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $603,000 $850,000 Direct labor 499,000 500,000 Units completed 15,700 7,400 Direct labor hours. 6,900 2,000 Number of setups 440 180 Number of orders 6,900 12,300 Machine hours 24,600 18,200 Receiving hours 2,900 7,000 The company's normal activity is 8,900 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. Model A Model B Unit Cost 8,900 X 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A 8,900 X < Model B 3. Which method produces the more accurate cost assignment? Four activity drivers