Number 3. on the word problem have two option Direct labor hours or four activity drivers.

If applied overhead is greater than actual overhead, it is called overapplied overhead. O True O False The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Overhead costs Total $7,500 $22,500 $30,000 Direct labor hours 7,500 2,500 10,000 Machine hours 2,500 7,500 10,000 Production information pertaining to Job 4X5: Assembly Dept. Finishing Dept. Total Prime costs $1,250 $0 $1,250 Direct labor hours 250 O 250 Machine hours 0 0 0 Units produced 500 0 500 What is the plantwide overhead rate based on direct labor hours? O a. $1.50 Ob. $9.00 Oc. $1.00 O d. $3.00 Abnormal spoilage is charged to the job that caused it. O True O False 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 $487,390 Number of setups 610 Ordering costs 336,600 Number of orders 18,700 Machine costs 865,200 Machine hours 41 200 Receiving 382,200 Receiving hours 9 100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $566,000 $ 795,000 Direct labor 464,000 482,000 Units completed 15,400 7,900 5,600 1,700 Direct labor hours 420 190 Number of setups 6,200 12,500 Number of orders 23,500 17,700 Machine hours 2,800 6,300 Receiving hours Number of setups 420 190 Number of orders 6,200 12,500 Machine hours 23,500 17,700 Receiving hours 2,800 6,300 The company's normal activity is 7,300 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 S 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 S Model B S 3. Which method produces the more accurate cost assignment