$[$The following information applies to the questions displayed below.$]$

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$[[\backslash$table$[[$Model N $800$ XL$],[$Model N $500]],\backslash$table$[[$Direct Labor$-],[$Hours per Unit$],[2\mathrm{.}0],[1\mathrm{.}0]],\backslash$table$[[$Annual Production$],[5,000$ units$],[12,500$ units$]],\backslash$table$[[$Total$],[$Direct$],[$Labor$-$Hours$],[10,000],[12,500]]],[,,,22,500]]$

Additional information about the company follows:

a$.$ Model $N800L$ requires $$75$ in direct materials per unit, and Model $N500$ requires $$35.$

b$.$ The direct labor wage rate is $$18$ per hour.

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

d$.$ Model N $800xL$ 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,Estimated$],[$Overhead Cost,,$],[$Machine setups,Number of setups,$$590,080$