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Activity Based Costing, Cost 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:



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

The company''s normal activity is 8,000 direct labor hours.

Required:

1. Determine the unit cost for each model using direct labor hours to apply overhead.

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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