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[The following information applies to the questions displayed below] Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and

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[The following information applies to the questions displayed below] 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 Total Direct per Unit Annual Production Labor Hours Model N 800 XL Model N 500 3.0 1.4 2,500 units 12,500 units 7,500 17,500 25,000 Additional information about the company follows a Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $40 b. The direct labor wage rate is $24 per hour 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 Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor hours Estimated Querhead Cost $470,000 220,000 3,435,000 Prav

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