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Required: Compute the unit manufacturing cost of TypeA and Type B storage cabinetsby using the company's current overhead costing procedures.
Required:
1. Compute the unit manufacturing cost of TypeA and Type B storage cabinets by using the company's current overhead costing procedures.
2. Compute the unit manufacturing cost of TypeA and Type B storage cabinets by using activity-based costing.
3. Is the cost of the TypeA storage cabinet overstated or understated (i.e., 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 TypeA storage cabinet is $360.00 and the marketing manager is contemplating a $40 discount to stimulate volume. Is this discount advisable?
