Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy-d uty. The company uses a job-order cost-accounting system with manufacturing overhead applied on the basis of direct-labor hours. The system has been in place with little change for 25 years. Product costs and annual sales data are as follows: Standard Model Deluxe l-iodel Heavy-Duty Model Annual sales (units) 21,966 1,296 9,266 Product costs: Raw material $ 15 $ 36 \