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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: Activity
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 $463,410 Number of setups 570 Ordering costs 315,000 Number of orders 17,500 Machine costs 816,000 Machine hours 40,800 Receiving 425,100 Receiving hours 10,900 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B < Direct materia $565,000 $827,000 Direct labor 484,000 488,000 Units completed 15,300 7,100 Direct labor hours 5,500 2.300 Number of setups 410 160 Number of orders 5,100 12,400 Machine hours 23,000 17,200 Receiving hours 3,000 7,900 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. Unit Cost Model A Model B
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