Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: 620 Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $499,720 Number of setups Ordering costs 318,600 Number of orders 17,700 Machine costs 779,400 Machine hours 43,300 Receiving 371,000 Receiving hours 10,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $574,000 $808,000 Direct labor 453,000 463,000 Units completed 16,300 8,800 Direct labor hours 6,200 1,600 Number of setups 450 170 Number of orders 5,200 12,500 Machine hours 24,900 18,400 Receiving hours 3,200 7,400 The company's normal activity is 7,800 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 Direct materials $574,000 $808,000 Direct labor 453,000 463,000 16,300 8,800 Units completed Direct labor hours 6,200 1,600 170 Number of setups 450 Number of orders 5,200 12,500 Machine hours 24,900 18,400 Receiving hours 3,200 7,400 The company's normal activity is 7,800 direct labor hours. Required: N 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? Four activity drivers