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 $501,120 Number of setups 640 Ordering costs 344,400 Number of orders 16,400 Machine costs 734,400 Machine hours 40,800 Receiving 361,200 Receiving hours 8,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $550,000 $797,000 Direct labor 486,000 464,000 Units completed 16,100 7,500 Direct labor hours 5,000 1,800 Number of setups 440 200 Number of orders 5,400 11,000 Machine hours 23,500 17,300 Receiving hours 2,000 6,400 The company's normal activity is 6,800 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 $fill in the blank 1 120.57 Model B $fill in the blank 2 974,200 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A $fill in the blank 3 Model B $fill in the blank 4 3. Which method produces the more accurate cost assignment? Four activity drivers