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Omega Industries provides you with the following cost report for Glowmax, its main product. Omeg. currently is producing 10,000 units of the product. Cost per

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Omega Industries provides you with the following cost report for Glowmax, its main product. Omeg. currently is producing 10,000 units of the product. Cost per Unit Remarks Materials and other variable $250 costs Labor cost Unit level overhead $200 $150 Order processing and other batch level costs $5 Design and other product level $50 costs Based on 2 batches at the maximum size of 5,000 units each Allocated equally across products. Costs for product divided by 10,000 to get cost per unit Total product divided by 10,000 units Facility Level costs $6.50 Total Cost per Unit $661.50 Required: a. Compute the cost to produce 1,000 additional units of Glowmax. b. Suppose that Omega has not implemented ABC. Rather, it allocates over-head costs to products at 150% of labor cost. As per this cost reporting system, calculate the cost to produce 1,000 additional units of Glowmax. c. Which of the estimates is likely to be a superior estimate of the incremental cost of producing the additional 1,000 units

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