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	11,500
Great P	17,500

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	$	39.50		$	26.90
Direct labor	$	19.10		$	14.70

Budget factory overhead:
Engineering and Design	2,700	engineering hours	$	486,000
Quality Control	13,130	inspection hours		337,740
Machinery	34,010	machine hours		541,920
Miscellaneous Overhead	26,690	direct labor hours		132,750
Total			$	1,498,410

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	1,110	1,590
Quality control inspection hours	5,790	7,340
Machine hours	20,430	13,580
Labor hours	12,150	14,540

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

• $60.01.

• $63.99.

• $46.53.

• $46.19.

• $58.70.