Please show calculations

7 6 Leatherback Inc. manufactures two types of handbags-Standard and Custom-and applies manufacturing overhead to all units using machine hours. Production information follows. Standard Custom Totals 8 Anticipated volume (units) 58,500 31,200 89,700 9 Direct-material cost per unit 46 $ 69 115 10 Direct-labor cost per unit 111 11 12 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 purchase orders. Data on the number of setups, machine hours, and purchase orders, which are the activities' three respective cost drivers, 13 follow. 14 15 Setups 16 Machine hours 17 Purchase orders 18 Totals Standard 176 62,400 200 Custom 136 87,750 150 312 150,150 350 23 20 The firm's total overhead is: $23,423,400 21 It is subdivided as follows: manufacturing setups $5,110,560 22 machine processing $14,054,040 purchase orders $4,258,800 24 Required: 25 1. Compute the per unit total manufacturing cost of Standard and Custom handbags by using the company's current overhead costing procedures with machine hours.(8pts) 26 27 2. Compute the per unit total manufacturing cost of Standard and Custom handbags by using activity-based costing-(12pts) 28 29 3. Assume that the current selling price of a Standard handbag is $330.00 and the marketing manager is contemplating a $60 discount to stimulate volume. Is this discount advisable? Show calculations to support your answer.(2pts) 30 31 4.Which method should the company use and why? List at least 3 reasons why. (3pts) 32