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	$421,350	Number of setups	530
Ordering costs	348,000	Number of orders	17,400
Machine costs	882,000	Machine hours	42,000
Receiving	339,300	Receiving hours	8,700

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

	Model A	Model B
Direct materials	$635,000	$764,000
Direct labor	477,000	473,000
Units completed	16,100	9,000
Direct labor hours	6,400	2,500
Number of setups	370	160
Number of orders	5,600	11,800
Machine hours	23,000	19,000
Receiving hours	2,200	6,500

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