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	$487,200	Number of setups	600
Ordering costs	394,800	Number of orders	18,800
Machine costs	930,600	Machine hours	42,300
Receiving	425,100	Receiving hours	10,900

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

	Model A	Model B
Direct materials	$641,000	$841,000
Direct labor	484,000	460,000
Units completed	16,400	8,700
Direct labor hours	6,600	1,800
Number of setups	440	160
Number of orders	6,300	12,500
Machine hours	23,800	18,500
Receiving hours	2,900	8,000

The company's normal activity is 8,400 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