Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $108 per machine hour. Production information follows ryee 600 21 Type B 40,500 Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit 21,600 22$ 27 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 128 43,200 200 Type B Total Setups Machine hours Outgoing shipments 60,750 150 216 103,950 350 The firm's total overhead of $11,226,600 is subdivided as follows: manufacturing setups, $2,449,440; machine processing $6,735,960; and product shipping, $2,041,200 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 total manufacturing overhead to production? By how much? 4. Assume that the current selling price of a Type A storage cabinet is $322.50 and the marketing manager is contemplating a $37 discount to stimulate volume. Is this discount advisable? Required Required 2Required 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 Required 1 Required 2 Required 3 Required 4 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 costs Required 1Required 2Required 3Required 4 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? (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