Question:5 Washington Office Equipment Company manufactures two types of filing cabinets, Deluxe and Executive and applies manufacturing overhead to all units at the rate of 80$ per machine hour. Production information is as follows: DM Deluxe Executive 40 65 25 25 DL Units Produced 16,000 30,000 The controller who is studying the use of ABC 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 are as follows: Deluxe Executive Total Setups 100 60 160 Machine Hours 32,000 45,000 77,000 Outgoing Shipments 200 150 350 The firm's total overhead cost is 6,160,000 is subdivided as follows: manufacturing setups 1,344,000, machine processing 3,696,000 and product shipping 1,120,000