Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming...
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Accounting
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 $512,200 Number of setups 650 Ordering costs 336,000 Number of orders 16,800 Machine costs 782,800 Machine hours 41,200 Receiving 433,200 Receiving hours 11,400 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $608,000 $752,000 Direct labor 454,000 466,000 Units completed 16,400 7,500 Direct labor hours 6,200 2,300 Number of setups 410 240 Number of orders 5,000 11,800 Machine hours 23,700 17,500 Receiving hours 3,800 7,600 The company's normal activity is 8,500 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 the nearest cent. Unit Cost Model A $fill in the blank 1 156.59 Model B $fill in the blank 2 2. Determine the unit cost for each model using the four activity drivers. Round your answers to the nearest cent. Unit Cost Model A $fill in the blank 3 Model B $fill in the blank 4 3. Which method produces the more accurate cost assignment?
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