Multiple Versus Single Overhead Rates, Activity Drivers
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
tableActivityExpected Cost,Activity Driver,Activity CapacitySetting up equipment,$Number of setups,Ordering costs,Number of orders,Machine costs,Machine hours,ReceivingReceiving hours,
Deoro produces two models of dishwashers with the following expected prime costs and activity demands:
tableModel AModel BDirect materials,$$
Required:
Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and
Unit Cost
Model A
Model B
Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.
tableUnit CostModel A$
