Question 2 ABC International LTD produces two types of industrial compressors: standard and upgraded. The company provided the following information: Standard Upgraded Sales units 5.000 3.000 Sales price per unit $600 $1000 Direct materials cost per unit $400 $600 I Direct labor cost per unit $70 $100 Number of machines hours per unit 3 4 Sales and marketing as percentage of total revenue 1% 1.5% Administration as percentage of total cost of labor 20% 20% The company groups its overhead activities under three categories as follows: Activity Total costs Total machining costs $270,000 Sales and marketing $75,000 Administration $130.000 I Required: Calculate the cost of a standard and an upgraded compressor (per unit) under the activity based costing system