Taylors Lid manufactures two types of storage cabinets, deluxe and executive, and applies manufacturi overhead to all units at the rate of $130 per machine hour. Production information is as follows: Deluxe Executive Direct material $54.50 $95 Direct labour cost 20.00 20.00 Budgeted volume (units) 10 000 12 000 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, are as follow: Deluxe Executive Total Setups 50 50 100 Machine hours 10 000 20 000 30 000 Outgoing shipments 100 60 160 The firm's total overhead of $5020 000 is subdivided as follows: manufacturing setups, $1 208 000; machine processing, $2 872 000; and product shipping, $940 000. Required: 1. Calculate the unit manufacturing cost of deluxe and executive cabinets by using the company's current overhead costing procedures. (4 marks) marks) 2. Calculate the unit manufacturing cost of deluxe and executive cabinets by using activity based costing. (4 . Calculate the aggregate amount by which the deluxe cabinet line is undercosted/overcosted 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. (4 marks)