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 $541,200 Number of setups 660

Ordering costs 360,000 Number of orders 18,000

Machine costs 824,000 Machine hours 41,200

Receiving 396,000 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 $631,000 $786,000

Direct labor $453,000 $460,000

Units completed 16,800 7,600

Direct labor hours 6,100 1,700

Number of setups 420 240

Number of orders 6,300 11,700

Machine hours 23,900 17,300

Receiving hours 3,300 6,600

The company's normal activity is 7,800 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

2.Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.