Homework 1 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 $457,040 Number of setups 580 Ordering costs 400,400 Number of orders 18,200 Machine costs 700,400 Machine hours 41,200 Receiving 397,800 Receiving hours 10,200 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $567,000 $756,000 Direct labor $456,000 $459,000 Units completed 16,700 9,000 Direct labor hours 5,900 2,500 Number of setups 430 150 Number of orders 5,200 13,000 Machine hours 23,600 17,600 Receiving hours 2,600 7,600