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$],[,\backslash$table$[[$Direct Labor$-],[$Hours per Unit$]],$Annual Production,Direct$],[$Labor$-$Hours,,,$]]$

Additional information about the company follows:

a$.$ Model N $800$ L requires $$65$ in direct materials per unit, and Model N $500$ requires $$20.$

b$.$ The direct labor wage rate is $$20$ 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:

$\backslash$table$[[,,$Estimated$],[$Activity Cost Pool,Activity Measure,Overhead Cost$],[$Machine setups,Number of setups,$$430,000$