3. Frase Corp is manufacturing marbles in two types TYPEI and TYPE2. These two product and the company has the following cost structure. The company is using Activity Based Casting method Overhead Activities Activity Cast Cost driver Machine Setup $180.000 1500 setup hours Materials Handling $ 50.000 12500 pounds of mat Hand Generating electric power for production S20.000 20000 kilowatt hours TYPEI TYPE2 Number of units produced 20.000 Direct materials cost $20.000 $ 25.000 Direct labor cost $ 12.000 $ 20.000 Number of setup hours 100 120 Pounds of materials used 500 1500 Kilowatt-hours used 1000 2000 10.000 a What is the total cost for TYPE and TYPE2 (10 points) b. What is the cost per unit for TYPEI and TYPE2 (10 points) 5000 S2 7. "A small company that produces a single product has the following cost structure." Number of Units produced 6000 Number of Units sold Selling Price $20 Variable cost per unit: Direct materials Direct labor $4 Variable manufacturing overhead SI Fixed costs per year: Fixed manufacturing overhead $30.000 Fixed selling and administrative expenses $10.000 a. What is the production cost per unit under absorption costing (5 points) b. What is the production cost per unit under variable costing (5 points) c. What is the value of ending inventory under absorption (5 points) d. What is the value of ending inventory under variable costing5 points) c. Explain why there is a difference on the value of ending inventory (15 points)