E Menu 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 Activity Cost Driver 950,000 2,500 setup hours 820,000 5,000 material moves 200,000 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue: Mirlite Subdue Giallons produced 0,000 30,000 Direct labor hours Machine hours Direct labor cost$10,000 $7,500 Direct materials cost $350,000 $150,000 Setup hours Material moves 400 250 800 250 15 12 35 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 Subdue Mirlite Direct materials Direct labor Manufacturing overhead Machine setups Mirlite Subdue Gallons produced50,000 30,000 400 250 800 250 Direct labor cost $10,000 $7,500 Direct materials cost $350,000 $150,000 12 35 Direct labor hours Machine hours 15 Setup hours 60 Material moves Determine the batch and unit costs per gallon of Mirlite and Subdue using ABO. Round cost per gallon to two decimal places. Product Costs Subdue Mirlite Direct materials Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total cost per batch s Gallons produced Cost per gallon