Stage Two ABC for Manufacturing Assume The Sherwin-Williams Company, a large paint man- ufacturer, 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 Materials handling Machine operation $900,000 820,000 400,000 2,500 setup hours 4,000 materials moves 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue: Mirlite Subdue Gallons produced Direct labor hours Machine hours Direct labor cost Direct materials cost. Setup hours Materials moves 60,000 400 800 $ 10,000 $360,000 15 60 25,000 250 250 $ 7,500 $150,000 12 35 ........... Required Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC