National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

Model	Annual Sales in Units
High F	10,000
Great P	16,000

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:

	High F			Great P
Direct materials	$	38.00		$	25.40
Direct labor	$	17.52		$	13.14

Budget factory overhead:
Engineering and Design	2,409	engineering hours	$	404,712
Quality Control	12,848	inspection hours		269,808
Machinery	33,726	machine hours		539,616
Miscellaneous Overhead	26,400	direct labor hours		134,904
Total			$	1,349,040

National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:

	High F	Great P
Engineering and design hours	969	1,440
Quality control inspection hours	5,648	7,200
Machine hours	20,286	13,440
Labor hours	12,000	14,400

Using activity-based costing, total overhead per unit of the High F model is

• $42.61.

• $45.99.

• $61.32.

• $66.73.

• $168.00.