The firm's total overhead of $15,769,600 is subdivided as follows: manufacturing setups, $3,440,640; machine processing $9.461760; and product shipping, $2,867,200. Required: 1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures 2. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity-based costing. 3. Is the cost of the Type A storage cabinet overstated or understated (le, distorted) by the use of machine hours to allocate total manufacturing overhead to production? By how much? 4. Assume that the current selling price of a Type A storage cabinet is $378.50 and the marketing manager is contemplating a $42 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. Required 1 Reshired 2 Required 3 Required 4 Required 2 Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures. Type A $ Type B 277 Unit manufacturing costs 325 $ Required 2 > The firm's total overhead of $15,769,600 is subdivided as follows: manufacturing setups. $3.440,640; machine processing. $9.461,760: and product shipping, $2,867,200. Required: 1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures 2. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity-based costing. 3. Is the cost of the Type A storage cabinet overstated or understated fie, distorted) by the use of machine hours to allocate total manufacturing overhead to production? By how much? 4. Assume that the current selling price of a Type A storage cabinet is $378.50 and the marketing manager is contemplating a $42 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity-based costing. (Round activity based application rates, overhead application and the final answers to 2 decimal places.) Type A Type B Unit manufacturing costs to search O eek 8 Review Problems Help Save 4 Machine hours Outgoing shipments 51,200 zee 72. eae 15e 123,200 35e The firm's total overhead of $15,769,600 is subdivided as follows: manufacturing setups, $3,440,640, machine processing, 59.461760 and product shipping. $2,867,200. Required: 1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current overhead costing procedures 2. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using activity based costing 3. Is the cost of the Type A storage cabinet overstated or understated (ie, distorted) by the use of machine hours to allocate total 4. Assume that the current selling price of a Type A storage cabinet is $378.50 and the marketing manager is contemplating a $42 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required by Required Is the cost of the Type A storage cabinet overstated or understated (.e., distorted) by the use of machine hours to allocate total manufacturing overhead to production? By how much? (Do not round intermediate calculations. Round activity based application rates, overhead application and the final answers to 2 decimal places.) Type A mon cabinetinis Required 2 Required 4 >
