Maxey & Sons manufactures the rate of $132 per machine hour. Production information follows two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at A Type B Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit 26,400 49,500 $3451 39 39 es 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 Total 152 264 112 Setups Machine hours Outgoing shipments 52,800 74,250127,050 350 200 150 The firm's total overhead of $16.770 600 is subdlvided as tollows manufacturing set $10,062.360, and product shipping $3,049 20o lows manufacturing setuos. $3659.040, machine processing the c any's current overhead costing Outgoing shipment:s 200 150 350 The firm's total overhead of $16,770,600 is subdivided as follows: manufacturing setups, $3,659,040, machine processing $10,062.360;, and product shipping. $3,049,200. 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 tota manufacturing overhead to production? By how much? 4. Assume that the current selling price of a Type A storage cabinet is $38700 and the marketing manager is contemplating a $4 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures. Type A Type B Unit manufacturing costs