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 10,100 16,100 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 Fi Great P $38.10. $25.50 $17.70 $13.30 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,420 engineering hours 12,850 inspection hours 33,730 machine hours 26,410 direct labor hours $ 411,400 282,700 573,410 132,050 $1,399,560