National Inc

Multiple Choice

National Inc.manufactures two models of CMD that can be used as cell phones,MPX,and digital camcorders.
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:
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:
Using activity-based costing,applied quality control factory overhead for the Great P model per unit is (rounded to the nearest cent) :

A) $4.60.
B) $9.45.
C) $13.44.
D) $15.12.
E) $42.61.