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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

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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. Cost driver 1500 12500 20000 setup hours pounds of mat. Hand kilowatt hours Overhead Activities Activity Cost Machine Setup $180.000 Materials Handling $ 50.000 Generating electric power for production $20.000 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 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) 500 7. "A small company that produces a single product has the following cost structure." Number of Units produced 6000 Number of Units sold 5000 Selling Price $20 Variable cost per unit: Direct materials $2 Direct labor $4 Variable manufacturing overhead $1 Fixed costs per year: Fixed manufacturing overhead $30.000 Fixed selling and administrative expenses $10.000 a. What is the production cost per unit under absorption costing (5 points) b. What is the production cost per unit under variable costing (5 points) c. What is the value of ending inventory under absorption (5 polats) d. What is the value of ending inventory under variable costing(5 points) c. Explain why there is a difference on the value of ending inventory (15 points)

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