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 $422,280 Number of setups 540 Ordering costs 320,400 Number of orders 17,800 Machine costs 952,600 Machine hours 43,300 Receiving 454,500 Receiving hours 10,100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $646,000 $830,000 Direct labor 494,000 478,000 Units completed 16,600 8,100 Direct labor hours 5,800 1,900 Number of setups 380 160 Number of orders 6,800 11,000 Machine hours 24,300 19,000 Receiving hours 2,400 7,700 The company's normal activity is 7,700 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 $fill in the blank 1 Model B $fill in the blank 2

2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A $fill in the blank 3 Model B $fill in the blank 4

3. Which method produces the more accurate cost assignment?