Puget World, Incorporated, manufactures two models of television sets, the N $8001$ model and the N $500$ model. Data regarding the two products follow:

$\backslash$table$[[,$Direct Labor$-,,$Total$],[,\backslash$table$[[$Hours per Unit$],[$Hotrect$]],$Annual Production,Labor$-$Hours$],[$Model N $800$ XL$,2\mathrm{.}5,6,000$ units,$15,000],[$Model N $500,1\mathrm{.}2,12,500$ units,$15,000],[,,,30,000]]$

Additional information about the company follows:

a$.$ Model $N800L$ requires $$75$ in direct materials per unit, and Model N $500$ requires $$30.$

b$.$ The direct labor wage rate is $$22$ per hour.

c$.$ The company has always used direct labor$-$hours as the base for applying manufacturing overhead cost to products.

d$.$ Model $N800L$ 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:

$\backslash$table$[[$Activity Cost Pool,Activity Measure,Estimated$],[$Overhead Cost,,$],[$Machine setups,Number of setups,$$450,000$