Otis manufactures two smart phone models: the Fancy, which sells for $1,200, and a new model, the Not-So-Fancy, which sells for $900. The direct production costs for each model, as well as number of units produced, are presented below. Fancy Not-So-Fancy Direct Materials $610 $315 Direct Labor ($20 per hour) $120 $100 Units Produced 22,000 11,000 Overhead, totalling $4,900,000, is currently allocated on the basis of direct labor hours. Management aims to have a 30% gross profit margin