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 10,700 16,700 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 $38.70 $26.10 $18.30 $13.901 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,540 engineering hours 12,970 inspection hours 33,850 machine hours 26,530 direct labor hours $ 431,800 258,200 506,850 105,880 $1,302,730