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2. A business produces one product which requires the following inputs: Direct Materials 6 kg at $ 4,80 per kg Direct labour 4 hour at
2. A business produces one product which requires the following inputs: Direct Materials 6 kg at $ 4,80 per kg Direct labour 4 hour at $7 per hour Building cost $18.000 per period Leased machine S600 for every 600 units (each machine has a capacity of 600 units) Store Cost $3.000 per period plus $3 per unit a. What is the total cost of production and the cost per unit at each of the following production levels: (20 points) -1000 units -2000 units b. Explain why the cost per unit is different at each level of production (10 points). 3. Frase Corp is manufacturing marbles in two types TYPEI and TYPE2. These two product and the company has the following cost structure. The company is using Activity Based Costing method
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