Maxey \& Sons manufactures two types of storage cabinets-Type A anid Type B-and applies manufacturing overhead to all units at the rate of $156 per machine hour. Production information follows The controller, Who 15 studying the use of activity-based costing. has determined that the firm's overhead can be identified with three octivities 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 divers, follow. 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 shippirig. $4,258,800 Required: 1. Compute the unit manulacturing cost of TypeA and Type B storage cabinets by using the company's current overheod costing procedures 2. Compute the unit manufocturing cost of Type A and Type B storage cabinets by using octivity based costing 3. Is the cost of the Type A storage cabinet overstated or understated (ie. distorted) by the use of machine hours to allocate totol manufocturing overhead to production? By how much? 4. Assume that the current selling price of a Type A stotage cabenet is $47500 and the marketing managen is contemplating a $49 discount to stimulote volume. is this discount advisable