Assume Sherwin$-$Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period:

Activity Cost Pool Activity Cost

Activity Cost Driver

Machine setup $$1,000,0002,500$ setup hours

Material handling $870,0005,000$ material moves

Machine operation $200,00020,000$ machine hours

The following data are for the production of single batches of two products, Mirlite and Subdue:

Mirlite Subdue

Gallons produced $50,00030,000$

Direct labor hours $400250$

Machine hours $800250$

Direct labor cost $$11,000$ $$8,500$

Direct materials cost $$400,000$ $$200,000$

Setup hours $1512$

Material moves $6035$

Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC.

Round cost per gallon to two decimal places.

Product Costs

Mirlite Subdue

Direct materials Answer

Answer

Direct labor Answer

Answer

Manufacturing overhead:

Machine setups Answer

Answer

Material handling Answer

Answer

Machine operation Answer

Answer

Total cost per batch Answer

Answer

Gallons produced Answer

Answer

Cost per gallon Answer

Answer