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ge is using signiticant memory, may signments Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all

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ge is using signiticant memory, may signments Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $128 per machine hour. Production information follows. Type A type B 25,600 48,000 Anticipated volume (units) Direct-material cost 32 s per unit Direct-labor cost per unit 37 37 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 ta 108 148 Machine hours 51,200 72,000 123,200 200 Setups 256 outgoing 150 350 The firm's total overhead of $15.769,600 is subdivided as follows: manufacturing setups, $3,440,640; machine processing, $9,461760; and product shipping. $2,867200. Required 1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures. 2. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity-based costing. 3. Is the cost of the Type A storage cabinet overstated or understated (i.e., distorted) by the use of machine hours to allocate total manufacturing overhead to production? By how much? 4. Assume that the current selling price of a Type A storage cabinet is $378.50 and the marketing manager is contemplating a $42 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below Required Required Required Required Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures. Unit manufacturing costs Required 2 >

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