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Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities,...

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Accounting

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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 $504,630 Number of setups 630 Ordering costs 393,800 Number of orders 17,900 Machine costs 915,600 Machine hours 43,600 Receiving 407 400 Receiving hours 9,700 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $754,000 479,000 Direct labor Units completed 5630,000 499,000 15,500 5,500 7,700 Direct labor hours 1,600 Number of setups 390 240 Number of orders 6,100 11,800 Machine hours 25,000 18,600 Receiving hours 3,000 6,700 The company's normal activity is 7,100 direct labor hours. 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 211 X Model 210 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 X 3. Which method produces the more accurate cost assignment? Four activity drivers

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