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 $479,460 number of setups 610 ordering costs 359,100 number of orders 17,100 machine costs 842,000 machine hours 42,100 receiving 355,200 receiving hours 9,600 deoro produces two models of dishwashers with the following expected prime costs and activity demands: model a model b direct materials $577,000 $760,000 direct labor $461,000 $459,000 units completed 16,600 7,200 direct labor hours 5,100 2,300 number of setups 400 210 number of orders 6,100 11,000 machine hours 23,100 19,000 receiving hours 3,300 6,300 the company's normal activity is 7,400 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 $

3. which method produces the more accurate cost assignment?

four activity drivers