Question: 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


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 $474,600 Number of setups 600 Ordering costs 313,200 Number of orders 17,400 Machine costs 739,800 Machine hours 41,100 Receiving 432,000 Receiving hours 9,600 Deoro produces two models of dishwashers with the following expected prime costs and actity demands: Model Model B Direct materials $579,000 $827,000 Direct labor 483,000 458,000 Units completed 16,200 8,200 Direct labor hours 5,300 1,600 Number of setups 450 150 Number of orders 5,800 11,600 Machine hours 23,100 10.000 Receiving hours 3,000 5,600 The company's normal activity is 6,900 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 Model 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent 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? 3. Which method produce Direct labor hours Four activity drivers Check My Work
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