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 $495,930 Number of setups 610 Ordering costs 336,000 Number of orders 16,800 Machine costs 877,800 Machine hours 41,800 Receiving 448,800 Receiving hours 10,200 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B. Direct materials $605,000 $759,000 Direct labor 475,000 477,000 Units completed 15,200 8,000 Direct labor hours 5,600 1,700 Number of setups 410 200 Number of orders 5,600 11,200 Machine hours 24,400 17,400 Receiving hours 3,400 6,800 The company's normal activity is 7,300 direct labor hours. Required: 1. Determine the unit 3,400 6,800 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 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