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CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet answered Marked out of 16.00 Flag question Two-Stage ABC for Manufacturing Assume Sherwin-Williams Company, a
CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet answered Marked out of 16.00 Flag question Two-Stage ABC for Manufacturing 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 Machine setup Material handling Machine operation Activity Cost $990,000 860,000 200,000 Activity Cost Driver 2,500 setup hours 5,000 material moves 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue Mirlite Subdue 50,000 30,000 250 250 $10,500 $8,000 Direct materials cost $390,000 $190,000 12 35 Gallons produced Direct labor hours Machine hours Direct labor cost 400 800 Setup hours 15 Material moves 60 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 Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total cost per batch Gallons produced Cost per gallon
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