National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Annual Sales Model High F in Units Great P 10,500 16,500 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: Direct materials. Direct labor High F Great P $38.50 $25.90 $18.10 $13.70 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,500 engineering hours 12,930 inspection hours 33,810 machine hours 26,490 direct labor hours. $ 412,500 270,690 574,090 158,700 $1,415,980