Multiple Versus Single Overhead Rates, Activity Drivers Deore 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 $434,600 Number of setups 530 Ordering costs 317,300 Number of orders 16,700 Machine costs 864,000 Machine hours 43,200 Receiving 430,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $634,000 $766,000 Direct labor $451,000 Units completed 8,300 2.500 Direct labor hours Number of setups Number of orders $454,000 15,800 5,100 370 5,400 24,900 3,600 160 11,300 18,300 Machine hours Receiving hours 6,400 The company's normal activity is 7.600 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 cont. Unit Cost Model A Model B Chapter 04 Homework EBOOK Receiving 1200 Receiving hours 10,000 Deore produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $766,000 Direct labor $451,000 Units completed $634,000 $454,000 15,800 5,100 370 8,300 Direct labor hours 2,500 Number of setups 160 Number of orders 5,400 11,300 Machine hours 18,300 24,900 3,600 Receiving hours 6,400 The company's normal activity is 7,600 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