National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 10,900 16,900. 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 $38.90 $26.30 $18.50 $14.10 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,580 engineering hours 13,010 inspection hours 33,890 machine hours. 26,570 direct labor hours $ 412,800 323,250 507,150 158,940 $1,402,140