15. National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

Model	Annual Sales in Units
High F	10,800
Great P	16,800

National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:

	High F			Great P
Direct materials	$	38.80		$	26.20
Direct labor	$	18.40		$	14.00

Budget factory overhead:
Engineering and Design	2,560	engineering hours	$	409,600
Quality Control	12,990	inspection hours		271,320
Machinery	33,870	machine hours		540,800
Miscellaneous Overhead	26,550	direct labor hours		132,400
Total			$	1,354,120

National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:

	High F	Great P
Engineering and design hours	1,040	1,520
Quality control inspection hours	5,720	7,270
Machine hours	20,360	13,510
Labor hours	12,080	14,470

Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is: (Rounded to the nearest cent.)

Multiple Choice

• $57.42.

• $61.41.

• $45.12.

• $43.69.

• $56.59.