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Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:

	Direct Labor- Hours per Unit	Annual Production		Total Direct Labor-Hours
Model N 800 XL	3.5	2,000	units	7,000
Model N 500	1.3	10,000	units	13,000
				20,000

Additional information about the company follows:

a. Model N 800 XL 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:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost
Machine setups	Number of setups	$ 370,000
Special processing	Machine-hours	170,000
General factory	Direct labor-hours	1,260,000
		$ 1,800,000

Activity Measure	Expected Activity
	Model N 800 XL	Model N 500	Total
Number of setups	165	205	370
Machine-hours	17,000	0	17,000
Direct labor-hours	7,000	13,000	20,000

Required:

Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round answer to 2 decimal places.)

Compute unit product cost of Model N 800 XL: