work #3 ook elences aw Help Save & Exit Submit Problem 5-49 Activity-Based Costing; Product Promotion (LO 5-1,5-2,5-4, 5-5) Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $132 per machine hour. Production information follows. Anticipated volume (units) Direct-material cost per unit Type A 26,400 Type B 49,500 $ Direct-labor cost per unit 34 39 $ 51 39 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 152 52,800 200 Type B Total 112 74,250 150 264 127,050 350 The firm's total overhead of $16,770,600 is subdivided as follows: manufacturing setups, $3,659,040; machine processing. $10.062,360 and product shipping. $3,049,200 < Prev 4 of 12 Next >