A company can make a product at either of two factories, Factory A or Factory B The direct material costs per unnt and the variable overhead costs per unit are the same for either factory In Factory A a team of 50 direct operatives would be required to produce 2,000 units in a 40-hour week with the following numbers and rates of pay Operator No. of Hourly rate per grade operators operator 30 60 L 15 8.0 M 5 100 In Factory B a team of 45 direct operatives would be required to produce 2,000 units in a 40-hour week with the following numbers and basic rates of pay Operator No. of Hourly rate per grade operators operator R 28 30 s 50 70 In addition, each operator on every grade at Factory B would be paid a bonus of 0 08 for every unit produced 13 4 If the product is made at Factory A. it will increase Factory A s fixed production overheads by 3,800 per week but if the product is made at Factory B. it will increase Factory B's fixed production overheads by 3,500 per week. REQUIRED (a) Calculate for each factory, based on a volume of 2000 units per week: w the total weekly labour cost (i) the labour cost per unit (13 marks) (b) Advise management which factory to choose and support your answer with appropriate calculations (2 marks) (c) Assuming labour costs per unit (calculated in (a)) remain constant, advise management, with reasons and showing calculations, which factory to choose for a volume of 2.200 units a week. (5 marks) (Total 20 marks)