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 Number of setups Ordering costs Number of orders Machine costs Receiving Direct materials Direct labor 745,200 329,000 Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours Required: Model A Model B $493,290 392,700 Model A $ Model B $ Unit Cost Model A $624,000 $473,000 201.77 2,300 The company's normal activity is 8,400 direct labor hours. 170.94 X Unit Cost 15,700 6,800 410 130.87 X 5,700 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. 290 X Machine hours 23,700 Model B $770,000 $491,000 8,100 1,600 220 13,000 17,700 7,100 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. 630 18,700 41,400 3. Which method produces the more accurate cost assignment? Four activity drivers 9,400