Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Model N 800 x Model 500 Direct Labor Total Direct Hours per Unit Annual Production Labor-Hours 3.0 3,000 units 9,000 1.0 12,000 units 12,000 21.000 Additional Information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $18 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment Consequently, the company is considering the use of activity based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows Activity Eutimated Activity Cont Pool Measure Overhead cost Machine setups Number of setups $360,000 Special processing Machine-hours 165,000 General factory Direct labor-hours 1.260.000 $ 1,785,000 Total Activity Measure Number of setups Machine-bours Direct labor-hours Model N800 XL 100 16,500 9,000 Expected Activity Model N 500 200 0 12,000 300 16,500 21,000 Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Model N 800 x Model 500 Direct Labor Total Direct Hours per Unit Annual Production Labor-Hours 3.0 3,000 units 9,000 1.0 12,000 units 12,000 21.000 Additional Information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $18 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment Consequently, the company is considering the use of activity based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows Activity Eutimated Activity Cont Pool Measure Overhead cost Machine setups Number of setups $360,000 Special processing Machine-hours 165,000 General factory Direct labor-hours 1.260.000 $ 1,785,000 Total Activity Measure Number of setups Machine-bours Direct labor-hours Model N800 XL 100 16,500 9,000 Expected Activity Model N 500 200 0 12,000 300 16,500 21,000