and Executive Wilmington Office Equipment Corporation manufactures two types of filing and applios manufacturing overheed to all units at the rate of $120.00 per machine hour. Production information follows. $ 28 42 Direct-material cost Direct-labor cost Budgeted volume (units) 24,000 45,000 The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow. 140 240 48,00067,500 115,500 350 100 Setups Machine hours Outgoing shipments200150 The firm's total overhead of $13,860,000 is subdivided as follows: manufacturing setups, $3,024,000; machine processing, $8,316,000; and product shipping, $2,520,000. Required: 1. Compute the unit manufacturing cost of Deluxe and Executive filing cabinets by using the company's current overhead costing procedures. Deluxe Executive Unit manufacturing costs 2. Compute the unit manufacturing cost of Deluxe and Executive filing cabinets by using activity-based costing. (Round activity based application rates, overhead application and the final answers to :2 decimal places.) Deluxe Executive Unit manufacturing costs of the Deluxe filing cabinet overstated or understated (i.e., distorted) by the use of machine hours to allocate total manufacturing overhead to production? By how much? (Round your answer to 3. Is the cost