Excel problem(25pts)
Please input the numbers for the problem on this sheet and include all detailed calculations on the next sheet.
If the number is wrong and you do not include enough detailed calculations, no partial credit will be given.
No credit will be given for just answers.
Smith Corporation manufactures two types of storage cabinetsType A and Type Band applies manufacturing overhead to all units using machine hours. Production information follows.
		Type A			Type B
Anticipated volume (units)		31,200			58,500
Direct-material cost per unit	$	46		$	69
Direct-labor cost per unit		51			51
The controller, who is studying the use of activity-based costing, has determined that the firms 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.
		Type A			Type B			Total
Setups		176			136			312
Machine hours		62,400			87,750			150,150
Outgoing shipments		200			150			350
The firms total overhead of $23,423,400 is subdivided as follows: manufacturing setups, $5,110,560; machine processing, $14,054,040; and product shipping, $4,258,800.
Required:
1. Compute the unit manufacturing cost of Type A and Type B storage cabinets by using the companys 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 (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 Type A storage cabinet is $475.00 and the marketing manager is contemplating a $49 discount to stimulate volume. Is this discount advisable?