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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 $549,930 Number of setups 690 Ordering costs 378,000 Number of orders. 18,000 Machine costs 882,000 Machine hours 42,000 Receiving 420,000 Receiving hours 10,500 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $628,000 $813,000 Direct labor $457,000 $473,000 Units completed 16,900 8,500 Direct labor hours 5,800 1,700 Number of setups 450 240 Number of orders 5,900 12,100 Machine hours 23,900 18,100 Receiving hours 4,000 6,500
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