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 $551,480 Number of setups 680 Ordering costs 334,000 Number of orders 16,700 Machine costs 928,400 Machine hours 42,200 Receiving 477,000 Receiving hours 10,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $623,000 $767,000 Direct labor $455,000 $473,000 Units completed 15,600 8,500 Direct labor hours 6,300 2,000 Number of setups 450 230 Number of orders 5,200 11,500 Machine hours 24,200 18,000 Receiving hours 3,800 6,800 The company's normal activity is 8,300 direct labor hours

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 $551,480 Number of setups 680 Ordering costs 334,000 Number of orders 16,700 Machine costs 928,400 Machine hours 42,200 Receiving 477,000 Receiving hours 10,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $623,000 $767,000 Direct labor $455,000 $473,000 Units completed 15,600 8,500 Direct labor hours 6,300 2,000 Number of setups 450 230 Number of orders 5,200 11,500 Machine hours 24,200 18,000 Receiving hours 3,800 6,800 The company's normal activity is 8,300 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 DO Model B 3. Which method produces the more accurate cost assignment? Four activity drivers