I don't understand the breakdown for each of the costs. Could someone explain the breakdown and the WHY so that i can understand this going forward with similar types of questions?

A clothing line manufactures two types of suitsHand made and Machine madeand applies manufacturing overhead to all units using direct labor hours.

Production information follows.

Anticipated volume (units):

Hand Made: 31,000

Machine Made: 58,000

Direct-material cost per unit:

Hand Made: $ 75

Machine Made: $45

Direct-labor cost per unit $15 per hour

Hand made = 4 hours per suit; total hours for HM 124,000

Machine made = 2 hours per suit; total hours for MM 116,000

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.

Set Up:

Hand Made: 176.

Machine Made: 136

Set up Total 312

Machine hours

Hand Made: 62,400

Machine Made:87,750

Machine Hour Total:150,150

Outgoing shipments

Hand Made:150

Machine Made: 200

Shipment totals: 350

The firm's total overhead of $23,423,400 is subdivided as follows: manufacturing setups, $5,110,560; machine processing, $14,054,040; and product shipping, $4,258,800.

Current sales price is the following based on using DL hours for MOH.$Hand Made:650.00Machine Made $290.00

Questions:

1.Compute the per unit manufacturing cost of Hand Made and Machine Made by using the company's current overhead costing procedures using Direct labor hours for applied MOH.

2. Compute the per unit manufacturing cost of Hand Made and Machine Made by using activity-based costing.

3.Which method should the company use and why?List at least 3 reasons why.

4.If the company decides to use ABC, should the company change the sales price for each suit?What should it be based on?