The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $135 in direct materials and requires 3 hours of machine time to produce. Additional information follows: What is the cost of assembly per chair? $37.50 $25.00 $20.25 $18.00 The cost of installing improved production equipment and production processes is a(n) _____ cost. prevention external failure appraisal internal failure