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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
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 $474,950 Number of setups 590 Ordering costs 343,800 Number of orders 19,100 Machine costs 807,500 Machine hours 42,500 Receiving 397,800 Receiving hours 10,200 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $649,000 $818,000 Direct labor $453,000 $458,000 Units 15,000 8,400 completed Direct labor 6,400 2,000 hours Number of 370 220 setups Number of 7,000 12,100 orders Machine hours 24,800 17,700 Receiving hours 3,700 6,500 The company's normal activity is 8,400 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
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