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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 $394,500 Number of setups 500 Ordering costs 402,600 Number of orders 18,300 Machine costs 724,200 Machine hours 42,600 Receiving 394,800 Receiving hours 9,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B > Direct materials $582,000 $766,000 Direct labor $480,000 $460,000 15,800 8,500 Units completed Direct labor hours 6,800 1,700 Number of setups 350 150 Number of orders 6.900 11,400 Machine hours 23,700 18,900 Receiving hours 3,400 6,000 o more Check My Work uses remaining Type here to search o V.cengbgenow.com/ilm/lake Assignment/takeAssignmentMain.do?inprogress=true CH 4 Text Assignments eBook Print Item DOCTOR Number of setups 350 150 Number of orders 6,900 11,400 Machine hours 23,700 18,900 Receiving hours 3,400 6,000 The company's normal activity is 8,500 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? Four activity drivers O more Check My Work uses remaining . Type here to search O IL

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