National Inc. manufactures two models of CMD that can be used as cell phones, MPXand digital camcorders Model High F Great P Annual Sales in Units 11,380 17,3ee 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 $39.38 $26.70 Direct labor $18.90 $14.50 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,660 engineering hours 13,000 inspection hours 33,970 machine hours 26,650 direct labor hours $ 125,600 350,190 541,600 132,650 $1,450,040 National's controller had been researching activity based costing and decided to switch tot. A special study determined Nationals two products have the following budgeted activities National's controller had been researching activity based costing and decided to switch to it. A special study determined Nationals two products have the following budgeted activities Engineering and design hours Quality control inspection hours Machine hours Labor hours High F Great P 1,090 1,57 5,770 7,320 20,410 13,560 12,138 14,520 Using the firm's volume based costing applied factory overhead per unit for the High F model (Rounded to the nearest cent) Multiple Choice $59.01 $45.27 O $58.10. O $62.99 $46.12