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 $525,850 Number of setups 650 Ordering costs 360,000 Number of orders 18,000 Machine costs 802,000 Machine hours 40,100 Receiving 414,000 Receiving hours 11,500 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $551,000 $798,000 Direct labor 482,000 452,000 Units completed 15,500 7,000 Direct labor hours 6,500 2,400 Number of setups 410 240 Number of orders 5,600 12,400 Machine hours 23,100 17,000 Receiving hours 4,000 7,500 The company's normal activity is 8,900 direct labor hours. 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?