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 | $482,510 | Number of setups | 610 || Ordering costs | $372,000 | Number of orders | 18,600 || Machine costs | $864,000 | Machine hours | 43,200 || Receiving | $410,000 | Receiving hours | 10,000 |Deoro produces two models of dishwashers with the following expected prime costs and activity demands:| **Model** | **Model A** | **Model B** ||-------------------------|-------------|-------------|| Direct materials | $627,000 | $836,000 || Direct labor | $481,000 | $497,000 || Units completed | 16,200 | 8,500 || Direct labor hours | 6,400 | 1,500 || Number of setups | 370 | 240 || Number of orders | 5,800 | 12,800 || Machine hours | 24,900 | 18,300 || Receiving hours | 3,700 | 6,300 |The company's normal activity is 7,900 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 the 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 the nearest cent. **Unit Cost** - Model A: $ ___ - Model B: $ ___3. Which method produces the more accurate cost assignment?

Name: Deoro Company has identified the following overhead activities, costs
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Description: Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:| **Activity** | **Expected Cost** | **Activity Driver** | **Activity Capacity** ||-------------------------|-----------------

The overhead is applied to the production on the basis of a predetermined overhead rate. The unit…

Business

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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 Number of setups 610 Ordering costs Number of orders Machine costs Machine hours Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B $836,000 497,000 8,500 1,500 Direct materials Direct labor Units completed Direct labor hours Number of setups $482,510 372,000 864,000 410,000 $627,000 481,000 16,200 6,400 370 5.900 240 17.000 18,600 43,200 10,000

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 Number of setups 610 Ordering costs Number of orders Machine costs Machine hours Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B $836,000 497,000 8,500 1,500 Direct materials Direct labor Units completed Direct labor hours Number of setups $482,510 372,000 864,000 410,000 $627,000 481,000 16,200 6,400 370 5.900 240 17.000 18,600 43,200 10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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