Week 5 - Chapter 5 Quiz i Saved Help Save & Exit Submit National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital 12 camcorders. Annual Sales Model in Units 01:13:59 High F 11, 600 Great P 17, 608 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High F Great P Direct materials $39 . 60 $27 .00 Direct labor $19 .20 $14.80 Budget factory overhead: Engineering and Design 2,720 engineering hours $ 462, 400 Quality Control 13, 150 inspection hours 364, 000 Machinery 34, 030 machine hours 575, 960 Miscellaneous Overhead 26,710 direct labor hours 159, 360 Total $1, 561, 720 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: High F Great P Engineering and design hours 1, 120 1, 600 Quality control inspection hours 5 , 800 7 , 350 Machine hours 20, 440 13, 590 Labor hours 12, 160 14, 550 Using activity-based costing, applied quality control factory overhead for the High F model per unit is: (Rounded to the nearest cent.) Multiple Choice ( ) $6.25. O $13.84