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	$497,860	Number of setups	620
Ordering costs	366,000	Number of orders	18,300
Machine costs	856,000	Machine hours	42,800
Receiving	432,600	Receiving hours	10,300

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

	Model A	Model B
Direct materials	$605,000	$773,000
Direct labor	$482,000	$477,000
Units completed	15,300	7,600
Direct labor hours	6,000	1,700
Number of setups	420	200
Number of orders	5,700	12,600
Machine hours	24,700	18,100
Receiving hours	2,600	7,700

The company's normal activity is 7,700 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	$

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	$