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$[[,,,$Total$],[$Model N $800$ XL$,$Direct Labor$-,,$Direct$],[$Mours per Unit,Annual Production,Labor$-$Hours,$],[$Model N $500,1\mathrm{.}5,6,000$ units,$15,000],[15,0000,,,]]$

Additional information about the company follows:

a$.$ Model $N800xL$ requires $$90$ in direct materials per unit, and Model $N500$ requires $$50.$

b$.$ The direct labor wage rate is $$21$ per hour.

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

d$.$ Model N $800L$ 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$[[,,$Estimated$],[$Activity cost Pool,Activity Measure,Overhead Cost$],[$Machine setups,Number of setups,$$540,000$