ABC versus Plantwide Method Chairs company manufactures two types of chairs, Advanced and Small, and applies manufacturing overhead to all units at the rate of $120 per machine hour. Production information follows. Simple Chair Advanced Chair Direct material cost $52.50 $90 Direct labour cost $30.00 $30 Budgeted volume (units) 8,000 15,000 YOU determined that the firm's overhead can be identified with three activities: Simple Chair Setups (SU) 50 Machine hours (MH) 16,000 Outgoing shipment (OS) 100 The total cost for each activity were: Advanced Chair 30 22,500 75 Total 80 38,500 175 Setups (SU) $1,008,000 Machine hours (MH) $2,772,000 Which method should the Outgoing shipment (OS) $840,000 company adopt & why?!! Calculate the unit manufacturing cost of Simple and Advanced chairs using the current overhead costing method (plantwide). Calculate the unit manufacturing cost of Simple and Advanced chairs using Activity-Based Costing