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	$473,860	Number of setups	580
Ordering costs	315,000	Number of orders	17,500
Machine costs	799,900	Machine hours	42,100
Receiving	401,700	Receiving hours	10,300

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

	Model A	Model B
Direct materials	$589,000	$847,000
Direct labor	$488,000	$458,000
Units completed	16,900	8,600
Direct labor hours	5,400	1,900
Number of setups	380	200
Number of orders	5,800	11,700
Machine hours	24,700	17,400
Receiving hours	2,600	7,700

The company's normal activity is 7,300 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	$