Multiple Versus Single Overhead Rates, Activity Drivers

Honey 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	$441,180	Number of setups	540
Ordering costs	388,700	Number of orders	16,900
Machine costs	875,700	Machine hours	41,700
Receiving	386,100	Receiving hours	9,900

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

	Model A	Model B
Direct materials	$621,000	$782,000
Direct labor	495,000	500,000
Units completed	15,900	7,900
Direct labor hours	6,100	1,800
Number of setups	370	170
Number of orders	5,000	11,900
Machine hours	23,700	18,000
Receiving hours	3,400	6,500

The company's normal activity is 7,900 direct labor hours.

Required:

1. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.

	Unit Cost
Model A
Model B