Calculate production Cost by producing minimum quantity - 6 marks Month Expected Demand Production Days Jan 840 Feb 684 18 Mar 902 21 Cost Information Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay rate Labor - hours to produce a unit $ 7 per unit per month . $ 25 per unit $ per hour ($ 120 per day $ 20 per hour ( above 8 hours per day) 2.0 hours per unit