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Maxey 3: Sons manufactures two types of storage cabinetsType A and Type Band applies manufacturing overhead to all units at the rate of $813 per

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Maxey 3: Sons manufactures two types of storage cabinetsType A and Type Band applies manufacturing overhead to all units at the rate of $813 per machine hour. Production information follows. TYPE A Type B anticipated volume [units] 1?,665 33,361} Directmaterial cost per' unit $ 12 S 13 Directlabor cost per unit 1? 17 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. Type A Type II Total Setups 1'33 53 1?6 Machine hours 35,269 49,568 34,?39 Outgoing shipments 265 1513 355 ' The firm's total overhead of 951453500 is subdivided as follows: manufacturing setups, $1,525,240; machine processing, $4,472,150; and product shipping, $1,355,200. Required: 1. Compute the unit manufacturing cost onype 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 3 storage cabinets by using activity-based costing. 3. Is the cost of the Type :1 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 $255.50 and the marketing manager is contemplating a $32 discount to stimulate volume. Is this discount advisable? Comletae this question by entering voll- answers it the tabs below. Required 1 - -Reouireii 3 -Required 4 Compute the unit manufacturing cost 13me A and Tvpe B storage cabinets by using the company's current overhead ousting procedures. Unnmanurauunnwsts Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity-based costing. (Round activity based application rates, overhead application and the final answers to 2 decimal places.) Type A Type B Unit manufacturing costsIs 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? (Do not round intermediate calculations. Round activity based application rates, overhead application and the final answers to 2 decimal places.) Type A store cabinet line is red 2 Required 4 > overstated understated

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