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 11,000 17,000 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. $39.00 $26.40 $18.60 $14.20 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,600 engineering hours 13,030 inspection hours 33,910 machine hours 26,590 direct labor hours $ 468,000 310,560 574,940 185,500 $1,539,000