Question

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 $446,320 Number of setups 560 Ordering costs 378,400 Number of orders 17,200 Machine costs 844,000 Machine hours 42,200 Receiving 373,700 Receiving hours 10,100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $612,000 $812,000 Direct labor $465,000 $453,000 Units completed 15,800 7,400 Direct labor hours 5,400 2,300 Number of setups 380 180 Number of orders 6,000 11,200 Machine hours 23,700 18,500 Receiving hours 3,700 6,400 The company's normal activity is 7,700 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.

Answer 1