Puget World, Incorporated, manufactures two models of television sets, the N $800L$ model and the N $500$ model. Data regarding the two products follow:

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

Additional information about the company follows:

a$.$ Model N $800$ XL 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 $N800xL$ is more complex to manufacture than Model $N500$ 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,$\backslash$table$[[$Estimated$],[$Overhead Cost$]]],[$Machine setups,Number of setups,$$450,000$