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 10,500 16,500 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prim product were as follows: Direct materials Direct labor High F $38.50 $18.10 Great P $25.90 $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 National's controller had been researching activity-based costina and decided to switch to it. A special study determined mework arter Class 1 Saved Help Save & Exit Sub Multiple Choice $43.20 $6159 $165.00 $46.62 $66.97 Prey 1 of 20 : Next >