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	10,000
Great P	16,000

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	$38.00	$25.40
Direct labor	$17.52	$13.14

Budget factory overhead:
Engineering and Design	2,409 engineering hours	$404,712
Quality Control	12,848 inspection hours	269,808
Machinery	33,726 machine hours	539,616
Miscellaneous Overhead	26,400 direct labor hours	134,904
Total		$1,349,040

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	969	1,440
Quality control inspection hours	5,648	7,200
Machine hours	20,286	13,440
Labor hours	12,000	14,400

Using activity-based costing, applied engineering and design factory overhead for the High F model per unit is (rounded to the nearest cent):

		$6.13.
		$11.86.
		$16.28.
		$32.46.
		$66.73.