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 $600 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. Overhead Activities Activity Cost Cost driver Machine Setup Materials Handling Generating electric power for production $180.000 $ 50.000 $20.000 1500 12500 20000 setup hours pounds of mat. Hand. kilowatt hours TYPE2 TYPE1 10.000 20.000 Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours used $20.000 $ 12.000 100 500 1000 $ 25.000 $ 20.000 120 1500 2000 a. What is the total cost for TYPE1 and TYPE2 (10 points) b. WHat is the cost per unit for TYPE1 and TYPE2 (10 points)