Required:

Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to

nearest cent.

Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.

Which method produces the more accurate cost assignment?

Four activity drivers

Feedback

Check My Work

Plantwide OH rate is determined by taking the whole expected annual $OH$ driver $($in this case, the total direct labor hours$).$ Apply Overhead

to each Model and calculate Unit cost.

For each activity, consider what items would be used in the formula for OH $.$ Apply OH rate to individual activity for each Model.

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 comnanv's normal activitv is $8\mathrm{.}100$ direct lahor hours.

Required:

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

Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.

Unit Cost

Model A $,$$

Model B

Which method produces the more accurate cost assignment?

Four activity drivers

Feedback

Check My Work

Plantwide OH rate is determined by taking the whole expected annual $OH$ driver $($in this case, the total direct labor hours$).$ Apply Overhead

to each Model and calculate Unit cost.

For each activity, consider what items would be used in the formula for OH $.$ Apply OH rate to individual activity for each Model.

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 comnanv's normal activitv is $8\mathrm{.}100$ direct lahor hours.