Tokyo Panda Corp. manufactures two types of portable stitching machines:

They are units no. z-56 and no. z-57 and applies manufacturing overhead (MO) to all units at the rate of $100.00 per machine hour.

Production information follows below.

NO. 56 No. 57 Anticipated volume (units) 7,866 18,566 Direct material cost $ 49 $ 74 Direct labor' cost 76 34