b. Assume that Wild-Horse adds a 20% mark-up on VARIABLE costs to price a gaming system. The company has kept track of the direct costs for the production of one gaming system. Overhead consists of two types. General overhead and setup overhead. The general overhead is applied at the rate of $10 per direct labor hour for variable overhead and $20 per direct labor hour for fixed overhead. Set-up overhead should follow your choice of driver in 3a.

Wild-Horse produced 100 Pro-ultimate gaming systems during one month. Costs and information are as follows:

Direct Labor for design and production of all 100 units	50 hours @ $40 per hour
Direct materials per unit	$30 per unit
Setup information for all 100 units	5 setups and 11 setup hours

Wild-Horse produced 100 Pro-ultimate gaming systems during one month. Costs and information are as follows