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 $479,400 Number of setups 600 Ordering costs 294,100 Number of orders 17,300 Machine costs 775,800 Machine hours 43,100 Receiving 447,200 Receiving hours 10,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

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 Basic Calculator Setting up equipment $479,400 Number of setups 600 0 Ordering costs 294,100 Number of orders 17,300 BS C CE Machine costs 775,800 Machine hours 43,100 7 7 8 9 + Receiving 447,200 Receiving hours 10,400 4 5 6 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: 1 2 3 Model A Model B 0 Direct materials $583,000 $845,000 Direct labor $487,000 $486,000 Units completed 15,300 8,200 Direct labor hours 6,500 2,100 Number of setups 410 190 Number of orders 5,100 12,200 Machine hours 24,300 18,800 Receiving hours 2,900 7,500 The company's normal activity is 8,600 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 $ 69.6 x Model B 342.51 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? Direct labor hours Four activity drivers