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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 $480,850 Number of setups 590
Ordering costs 425,500 Number of orders 18,500
Machine costs 700,400 Machine hours 41,200
Receiving 298,800 Receiving hours 8,300

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:

Model A Model B
Direct materials $570,000 $821,000
Direct labor $462,000 $472,000
Units completed 16,500 8,800
Direct labor hours 6,600 1,800
Number of setups 400 190
Number of orders 6,300 12,200
Machine hours 23,400 17,800
Receiving hours 2,300 6,000

The company's normal activity is 8,400 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 A $
Model B $

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