Roger LId manufactures Iwo types of storage cabinets, deluxe and executive, and applies manufacturing overhead to all units at the rate of $125 per machine hour. Production information follows. Deluxe Executive Direct matenal cost $60.50 $95.00 Direct labour cost $40.00 $40.00 Budgeted volume (units) 10 000 20 000 The management accountant has determined that the firm's overhead can be identified with three activities: manufacturing selups, 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 Setups 40 20 60 Machine hours 15 000 25 000 40 000 Outgoing shipments 100 75 175 The firm's total overhead of $4 575 000 is subdivided as follows: manufacturing setups, 51 200 000; machine processing. $2 500 000; and product shipping. $875 000 Required: (a) Calculate the unit manufacturing cost of deluxe and executive cabinets by using the company's current overhead costing procedures. (5 marks) (b) Calculate he unit manufacturing cost of deluxe and executive cabinets by using activily based costing. (6 marks) (c) Calculate the aggregate amount by which the deluxe cabinet line is undercosted/overcosled by the company's current traditional overhead costing procedures. Then calculate the aggregate amount by which the traditional system undercosts/overcosts the executive cabinet line. (3 marks) (d) Assume that the current selling price of a deluxe cabinet is $390 and the markeling manager is contemplating a $45 discount to stimulate sales. Is this discount advisable? Briefly discuss. (1 mark)