8. 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	10,200
Great P	16,200

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	$	38.20		$	25.60
Direct labor	$	17.80		$	13.40

Budget factory overhead:
Engineering and Design	2,440	engineering hours	$	402,600
Quality Control	12,870	inspection hours		295,780
Machinery	33,750	machine hours		607,320
Miscellaneous Overhead	26,430	direct labor hours		158,520
Total			$	1,464,220

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	980	1,460
Quality control inspection hours	5,660	7,210
Machine hours	20,300	13,450
Labor hours	12,020	14,410

Using activity-based costing, applied quality control factory overhead for the Great P model per unit is: (Rounded to the nearest cent.)

Multiple Choice

• $5.34.

• $10.23.

• $14.94.

• $14.87.

• $45.37.