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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
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 $950,000 2,500 setup hours 520,000 5,000 material moves Machine operation 200,000 20,000 machine hours Material handling The following data are for the production of single batches of two products, Mirlite and Subdue: Gallons produced Mirlite 50,000 Subdue 40,000 Direct labor hours 300 150 Machine hours 700 150 Direct labor cost $10,000 $7,500 Direct materials cost $350,000 $150,000 Setup hours Material moves 15 13 70 35 Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. (Round your answers to the nearest cent.) Mirlite $ 0 * per gallon Subdue $0 x per gallon
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