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

$\backslash$table$[[,$Direct Labor$-,,$Total$],[$Direct$,,,],[$Model N $900$ XL$,$Hours per Unit,Annual production,Labor$-$Hours$],[$Model N $500,2\mathrm{.}5,3,500$ units,$8,750],[,1\mathrm{.}3,12,500$ units,$18,250]]$

Additional information about the company follows:

a$.$ Model $N800xL$ requires $$65$ in direct materials per unit, and Model $N500$ requires $$25.$

b$.$ The direct labor wage rate is $$16$ 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$[[$Mctivity Cost Pool,Activity Measure,overhead cost$],[\backslash$table$[[$Nachine setups$],[$special processing$],[$General factory$]],$Nuaber of setups,S $510,000],[$Nachine$-$hours,$230,000],[$Direct labor$-$hours,$1,410,000$