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QUESTION TWO Latisha Computer Corporation manufactures two brands of computers: Simple Comput (SC) and Complex Computer (CC). Latisha uses a long-run time horizon to price

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QUESTION TWO Latisha Computer Corporation manufactures two brands of computers: Simple Comput (SC) and Complex Computer (CC). Latisha uses a long-run time horizon to price Complex Computer (CC). Direct materials costs vary with the number of units produced. Direct manufacturing labor costs vary with direct manufacturing labor-hours. Ordering and receiving, testing and inspection, and rewor costs vary with their chosen cost drivers. Ordering Testing: Rework: Cost per Unit Direct materials Direct labor: 3.50 hours @ $19 per hour 66.50 Total $78 per order S 2 per inspection hour $38 per unit reworked $450.00 $516.50 Number of orders placed: 17,000 Number of testing hours: 3,000,000 Number of units reworked:8,000 The direct fixed costs of machines used exclusively for the manufacture of Complex Computer total $7,000,000. Required What is the cost of producing 100,000 units of Complex Computer

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