The company's normal activity is 8,200 direct labor hours

The company's normal activity is 8,200 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 169.5 ? Model B $ 198.4 x 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 $ 3. Which method produces the more accurate cost assignment? Four activity drivers
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 $494,140 Number of setups 620 Ordering costs 322,200 Number of orders 17,900 Machine costs 867,300 Machine hours 41,300 Receiving 319,200 Receiving hours 8,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $594,000 $789,000 Direct labor $487,000 $478,000 Units completed 15,600 8,600 Direct labor hours 6,400 1,800 Number of setups 370 250 Number of orders 5,900 12,000 Machine hours 24,100 17,200 Receiving hours 2,000 6,400