Pristine Ltd manufactures two types of storage cabinets, deluxe and executive, and applies manufacturing overhead to all units at the rate of $180 per machine hour. Production information follows. Deluxc 50.00 30.00 8,000 Exccutive Direct material cost Direct labour cost Budgeted volume (units) 70 30 15,000 The management accountant 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: Deluxe Executive Total 50 16,000 100 80 20,000 36,000 170 30 Setups Machine hours Outgoing shipments 70 The firm's total overhead of $6,845,800 is subdivided as follows: manufacturing setups, $1,289,600; machine processing, $4,968,000; and product shipping, $588,200. Required 1. Calculate the unit manufacturing cost of Deluxe and Executive cabinets by using the company's current overhead costing procedures Deluxe Executive Unit manufacturing costs 2. Calculate the unit manufacturing cost of Deluxe and Executive cabinets by using activity-based costing. (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Executive Unit manufacturing costs 3. Is the cost of the Deluxe cabinet overstated or understated (i.e. distorted) by the use of machine hours to allocate total manufacturing overhead to production? If so, by how much? (Round your intermediate calculations and final answers to 2 decimal places. Input the amount as positive value. Deluxe storage cabinet is