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	$447,700	Number of setups	550
Ordering costs	394,800	Number of orders	18,800
Machine costs	734,400	Machine hours	40,800
Receiving	366,300	Receiving hours	9,900

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

	Model A	Model B
Direct materials	$622,000	$752,000
Direct labor	$465,000	$492,000
Units completed	15,300	7,100
Direct labor hours	6,200	2,500
Number of setups	390	160
Number of orders	6,300	12,500
Machine hours	23,800	17,000
Receiving hours	2,700	7,200

The company's normal activity is 8,700 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	$