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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 $486,170 Number of setups 610 Ordering costs 334,800 Number of orders 18,600 Machine costs 688,500 Machine hours 40,500 Receiving 453,600 Receiving hours 10,800 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $556,000 $804,000 Direct labor $476,000 $480,000 Units completed 15,500 9,000 Direct labor hours 6,200 1,900 Number of setups 420 190 Number of orders 6,500 12,100 Machine hours 23,000 17,500 Receiving hours 3,500 7,300 The company's normal activity is 8,100 direct labor hours.
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