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 Cost driver Machine Setup Materials Handling Generating electric power for production Activity Cost $180.000 $ 50.000 $20.000 1500 12500 20000 setup hours pounds of mat. Hand kilowatt hours TYPE1 TYPE2 Num 10.000 20.000 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 TYPE and TYPE2 (10 points) b. WHat is the cost per unit for TYPEI and TYPE2 (10 points) 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 Direct labor 54 Variable manufacturing overhead Fixed costs per year: Fixed manufacturing overhead $30.000 Fixed selling and administrative expenses $10.000 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 points) d. What is the value of ending inventory under variable costing(5 points) e Explain why there is a difference on the value of ending inventory (15 points)