WE 34 costs, did you define transaction and duration drivers. DJU) to each type of purse? Explain. Exercise 4.16 Multiple versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity the coming year: Activity Expected Cost Activity Driver Activity Capacit Setting up equipment $480,000 Number of setups Ordering costs 360,000 Number of orders Machine costs 840,000 Machine hours Receiving 400,000 Receiving hours 18.000 42,000 10,000 Chapter + Activity-Based Costing 191 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $800,000 Direct labor $480,000 $480,000 Units completed 16,000 8.000 Direct labor hours 6,000 2,000 Number of setups 400 Number of orders 12,000 Machine hours 24,000 18,000 Receiving hours 3,000 7.000 200 6,000 The company's normal activity is 8,000 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. 2. Determine the unit cost for each model using the four activity drivers. 3. Which method produces the more accurate cost assignment? Why? - A Dictionar OBIECTIVE 3