3. Which method produces the more accurate cost assignment?

A. Direct Labor Hours

B. Four activity drivers

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 $428,220 Number of setups 540 Ordering costs 446,200 Number of orders 19,400 Machine costs 939,400 Machine hours 42,700 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 $630,000 $812,000 Direct labor $475,000 $467,000 Units completed 15,200 8,100 Direct labor hours 5,900 1,900 Number of setups 370 170 Number of orders 6,900 12,500 Machine hours 24,900 17,800 Receiving hours 2,300 6,800 The company's normal activity is 7,800 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 3. Which method produces the more accurate cost assignment