National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Annual Sales Mode1in Units High F Great P 10,300 16, 300 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: Direct materials Direct labor High F Great P $38.30 $25.70 $17.90 $13.50 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total $ 418,200 308,880 506,250 26, 450 direct labor hours132, 150 $1,365,480 2,460 engineering hours 12,890 inspection hours 33,770 machine hours $15.33. $10.61. $442 $1238 $42.74