Question

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Deoro produces two models of dishwashers with the following expected prime costs and activity demands:
The company’s normal activity is 8,000 direct labor hours.
Required:
1. Determine the unit cost for each model using direct labor hours to apply overhead.
2. Determine the unit cost for each model using the four activity drivers.
3. Which method produces the more accurate cost assignment? Why?


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  • CreatedSeptember 01, 2015
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