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 $462,260 Number of setups 580 Ordering costs 376,200 Number of orders 19,800 Machine costs 848,000 Machine hours 42,400 Receiving 336,000 Receiving hours 8,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

Model A Model B Direct materials $612,000 $840,000 Direct labor $465,000 $485,000 Units completed 15,900 7,600 Direct labor hours 5,300 1,700 Number of setups 410 170 Number of orders 7,000 12,800 Machine hours 24,700 17,700 Receiving hours 2,000 6,400 The company's normal activity is 7,000 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 $