M19-16. Two-Stage ABC for Manufacturing Bismark Inc., a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity Cost Driver Activity Cost Pool Machine setup.... Material handling ........... Machine operation .......... Activity Cost $600,000 90,000 420,000 15,000 setup hours 3,000 tons of materials 12,000 machine hours The following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August: Swing Drives Camshafts 1,500 900 . Units produced ............ Machine hours....... Direct labor hours...... Direct labor cost .... . .... Direct materials cost ...... .. Tons of materials... Setup hours ................. . .. .. .. 300 $7,000 $40,000 500 $12,000 $30,000 Required Determine the unit costs of Camshafts and Swing Drives using ABC