3. .Frase Corp is manufacturing marbles in two types TYPE1 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 $180.000 1500 setup hours

Materials Handling $ 50.000 12500 pounds of mat. Hand.

Generating electric power for production $20.000 20000 kilowatt hours

TYPE1 TYPE2

Number of units produced 10.000 20.000

Direct materials cost $20.000 $ 25.000

Direct labor cost $ 12.000 $ 20.000

Number of setup hours 100 120

Pounds of materials used 500 1500

Kilowatt-hours used 1000 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)