Chapter 12 Due: Wednesday, November 25, 2020 Question 120 marks) Whelan Manufactures produces two products - Product A and Product B. The costs for 2019 include Direct Materials which are $4 per unit. In 2019 the company produced 5,000 units of Product A and 4,000 units of Product B. Indirect costs were inspection costs of $77,000 and Set up costs of $35,000 for the year. Activity by product was: Activity Inspection (based on hours) Set up (based on # of batches) Product A 1,000 150 Product B 1,200 200 Required a. Calculate the total costs and cost per unit for each Product. b. For 2020, the company is trying to reduce costs by 5% for each product. The company is considering switching suppliers which will result in a 25% decrease in direct materials cost per unit and due to being of lower quality, the company can expect 3% increase in inspection hours for each product. Inspection costs are expected to be $36 per hour. The Company expects no changes to the number of set up's or set up costs. Determine the cost per unit for each product if the units produced increase by 1.5% for each product. Did the company achieve their target cost reduction