Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $80 per machine hour Production information follows Type A Type B Anticipated volume (units) Direct-material cost per unit 15,000 Direct-labor cost per unit 20 8,000 $ 35 60 20 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 B Total Setups 50 Machine hours 16,000 22,500 38,500 Outgoing shipments 75 30 80 100 175 The firm's total overhead of $3,080,000 is subdivided as follows: manufacturing setups, 5672,000; machine processing. 51.848,000, and product shipping, $560,000. 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 ( e., distorted) by the use of machine hours to allocate total Rhomine