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 Number of setups Ordering costs Number of orders Machine costs Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders $428,760 Machine hours 439,300 Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Receiving hours 986,700 380,000 Model A $611,000 486,000 17,000 5,700 Machine hours 360 Model B $818,000 499,000 8,800 1,900 180 6,700 24,400 2,000 The company's normal activity is 7,600 direct labor hours. 12,400 540 18,500 8,000 19,100 42,900 10,000

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro produces two models of dishwashers with the following expected prime costs and activity demands: The company's normal activity is 7,600 direct labor hours. 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. 2. Determine the unit cost for each model using the four activity drivers, Round your answers to nearest cent. 3. Which method produces the more accurate cost assignment