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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 $488,400 Number of setups 600 Ordering costs 317,300 Number of orders 16,700 Machine costs 943,800 Machine hours 42,900 Receiving 447,200 Receiving hours 10,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $847,000 Direct labor 456,000 468,000 Units completed 16,800 8,000 Direct labor hours 5,200 2,100 Number of setups 360 240 Number of orders 5,500 11,200 Machine hours 24,300 18,600 Receiving hours 2,600 7,800 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 156 V 243.2 X 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost
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