weer o Wroblems Help SAVA A Exit Check 4 Problem 5-49 Activity-Based Costing: Product Promotion (LO 5-1, 5-2,5-4,5-5) 4 Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $128 per machine hour Production information follows. Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit Type A 25, 6ee $ 32 37 Type B 48,000 $ 48 37 The controller, who is studying the use of activity-based costing, 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 Setups Machine hours Outgoing shipments Type A 148 51, 20e 200 Type 0 168 72.00 150 Total 256 123,20 350 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 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 542 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. The firm's total overhead of $15,769,600 is subdivided as follows: manufacturing setups, $3,440,640; machine proce and product shipping, $2.867,200. ints Elook Required: 1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the company's current over 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 (.e., distorted) by the use of machine hours to 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 conte discount to stimulate volume. Is this discount advisable? References 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 couting. (Round actiu based application rates, overhead application and the final answers to 2 decimal places.) Type A Type B Unit manufacturing costs have Machine hours Outgoing shipments 51,200 200 72,000 150 123,200 350 The firm's total overhead of $15,769,600 is subdivided as follows: manufacturing setups, $3,440,640, machine processing, 594- 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 cour 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 to 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 discount to stimulate volume. Is this discount advisable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Is the cost of the Type A storage cabinet overstated or understated (1.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 Astor cabinetinis