Two stage ABC for manufacturing

Two-Stage ABC for Manufacturing Columbus Foundry. a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity cost pool Activity cost Activity cost driver Machine setup . SEDOMGDE 12.000 setup hours. Material handling ' 120.000 2,000 tons of materials Machine operation 500.000; 10.000 machine hours The following data are for the production of single batches of two products, C23 Cams and U2 Shafts: C23 Cams U2 Shafts Units produced 500 E 500; Machine hours 2 5i Direct labor hours 400 f 200i Direct labor cost I $5.000 510.000 l Direct materials cost I $30,000 $20,000 Tons of materials 12.5 3: Setup hours A: 9: Determine the unit costs of C23 Cams and U2 Shafts using ABC. C23 Cams $ 72.26 a U2 Shafts $ 103.6 8