Puget World, Incorporated, manufactures two models of television sets, the $N800L$ model and the $N500$ model. Data regarding the two products follow:

$\backslash$table$[[\backslash$table$[[$Model N $800$ XL$],[$Model N $500]],\backslash$table$[[$Direct Labor$-],[$Hours per Unit$],[2\mathrm{.}5],[1\mathrm{.}0]],\backslash$table$[[$Annual Production$],[6,000$ units$],[15,000$ units$]],\backslash$table$[[$Total$],[$Direct$],[$Labor$-$Hours$],[15,000],[15,000]]],[,,,30,000]]$

Additional information about the company follows:

a$.$ Model $N800L$ 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 $800$ 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$[[$Activity Cost Pool,Activity Measure,$\backslash$table$[[$Estimated$],[$Overhead Cost$]]],[$Machine setups,Number of setups,$$440,000$