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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: Expected Cost
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity Activity Setting up equipment Ordering costs $546,000 327,600 Number of setups 700 Number of orders 18,200 Machine costs 906,400 Machine hours 41,200 Receiving 365,500 Receiving hours 8,500 Model A Model B $604,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: >Direct materials $808,000 Direct labor $457,000 $486,000 Units completed 16,100 8,200 Direct labor hours 5,700 1,900 Number of setups 450 250 Number of orders 6,400 11,800 Machine hours 23,600 17,600 Receiving hours 2,000 6,500 The company's normal activity is 7,600 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final Unit Cost Model A $ 133.26 X 261.65 X Model B 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Madal A
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