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 Activity cost Activity cost driver

Machine setup $$950,0002,500$ setup hours

Material handling $720,0005,000$ 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 $70,00010,000$

Direct labor hours $500150$

Machine hours $900350$

Direct labor cost $$10,000$ $$7,500$

Direct materials cost $$350,000$ $$150,000$

Setup hours $1513$

Material moves $7035$

Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. $($Round your answers to the nearest cent.$)$

Mirlite $Answer

per gallon

Subdue $Answer

per gallon