Question: eBook Show Me How Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for

eBook Show Me How 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 $516,100 Number of setups 650 Ordering costs 370,000 Number of orders 18,500 Machine costs 932,800 Machine hours 42,400 Receiving 462,000 Receiving hours 10,500 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $577,000 $765,000 Direct labor 477,000 450,000 Units completed 16,800 8,800 Direct labor hours 5,400 2,100 Number of setups 450 200 Number of orders 6,400 12,100 Machine hours 24,300 18,100 Receiving hours 3,100 7,400 The company's normal activity is 7,500 direct labor hours. Number of setups 450 200 Number of orders: 6,400 12,100 Machine hours 24,300 18,100 Receiving hours 3,100 7,400 The company's normal activity is 7,500 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. Model A Model B Unit Cost 160 X 211 X 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? Four activity drivers
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