The company's normal activity is $7,600$ direct labor hours.

Required:

Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.

Notest

Model A

Model A

$x$

Model

$x$

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

Model A

Model

$

$x$

Which method produces the

Four activity drivers $$

Feedorok

TONek My Work

TONek My Work

Plantwide $OH$ rate is determined by taking the whole expected annual $OH+$ driver $($in this case, the total direct labor hours$).$ Apply Overhead to each Model and calculate Unit cost.

For each activity, consider what items would be used in the formula for $OH.$ Apply $OH$ rate to individual activity for each Model,

Compare both methods and discuss which is more accurate and why. Review diversity and significant non$-$unit overhead costs.