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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 Expected

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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 Expected Cost Activity Driver Activity Capacity Setting up equipment $401,000 Number of setups 500 Ordering costs 407,400 Number of orders 19,400 Machine costs 830,000 Machine hours 41,500 Receiving 481,500 Receiving hours 10,700 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $641,000 $799,000 Direct labor 472,000 492,000 17,000 7,000 Units completed 7,000 1,900 Direct labor hours 350 150 Number of setups 6,600 12,800 Number of orders Number of orders 6,600 12,800 Machine hours 23,800 17,700 Receiving hours 3,000 7,700 The company's normal activity is 8,900 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 3. Which method produces the more accurate cost assignment

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