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 $425,880 Number of setups 520 Ordering costs 304,300 Number of orders 17,900 Machine costs 765,000 Machine hours 42,500 Receiving 378,000 Receiving hours 10,500 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $630,000 $786,000 Direct labor $496,000 $468,000 Units completed 15,200 7,800 Direct labor hours 5,600 1,900 Number of setups 360 160 Number of orders 6,400 11,500 Machine hours 24,700 17,800 Receiving hours 3,300 7,200 The company's normal activity is 7,500 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? Four activity drivers