Yamaguchi Company makes printed circuit boards in a suburb of Kyoto. The production process is automated with computer-controlled robotic machines assembling each circuit board from a supply of parts. Yamaguchi has identified four activities:

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ACTIVITY Materials handling COST DRIVER Cost of direct materials Number of parts used Number of circuit boards Assembly Soldering Quality assurance Minutes of testing RATE 5% of materials cost 50 per part 1,500 per board 400 per minute Yamaguchi makes three types of circuit boards: Model A, Model B, and Model C. Requirements for production of each circuit board are as follows: MODEL A MODEL B MODEL C Direct materials cost Number of parts used Minutes of testing 4,000 6,000 8,000 60 5 40 20 3 2 1. Compute the cost of production of 100 of the three types of circuit boards and the cost per circuit board for each type. 2. Suppose the design of Model A could be simplified so that it required only 30 parts (instead of 60) and took only three minutes of testing time (instead of five). Compute the cost of 100 Model A circuit boards and the cost per circuit board.