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

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The following information applies to the questions displayed below Puget World, Inc, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow Direct Labor Total Direct Hours per Unit Annual Production Labor-Ho Model N 800 XL Model N 500 3.0 1.0 4,000 unlts 12.000 units 2,000 12,000 24,000 Additional information about the company follows a. Model N 800 XL requires $90 in direct materials per unit, and Model N 500 requires $40 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. 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: d. Activity Measure Estimated Overhead Cost Activity Cost Pool Machine setups Special processing General factory Number of setups $ 410,000 190,000 1,680,000 Machine-hours Direct labor-hours $2.280,000 Expected Activity Model N 800 XL Model N 500 Total Activity Measure Number of setups Machine-hours Direct labor-hours 240 160 20,000 400 0 20,000 2,00012,00024,000

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