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?

Note: Do not round intermediate calculations. Round activity based application rates, overhead application and the final answers to $2$ decimal places.

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Type A store cabinet line is understated $$3,956,547\mathrm{.}00$