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 $557,520 Number of setups 690 Ordering costs 363,300 Number of orders 17,300 Machine costs 757,800 Machine hours 42,100 Receiving 446,900 Receiving hours 10,900 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: : Model A Model B Direct materials $560,000 $814,000 Direct labor 477,000 484,000 Units completed 16,100 7,700 Direct labor hours 5,300 1,800 Number of setups 450 240 Number of orders 5,200 12,100 Machine hours 25,000 17,100 Receiving hours 3,800 7,100 The company's normal activity is 7,100 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 0.06 x 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