$\backslash$table$[[,\backslash$table$[[$Direct Labor$-],[$Hours per Unit$]],$Annual Production,$\backslash$table$[[$Direct$],[$Labor$-$Hours$]]],[$Model N $800$ XL$,3\mathrm{.}5,2,000$ units,$7,000],[$Model N $500,1\mathrm{.}3,10,000$ units,$13,000],[,*,20,000]]$

Additional information about the company follows:

a$.$ Model N $800L$ requires $$70$ in direct materials per unit, and Model N $500$ requires $$20.$

b$.$ The direct labor wage rate is $$14$ 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,$$370,000$