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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 latest

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
Material handling 520,000 5,000 material moves
Machine operation 200,000 20,000 machine hours

The following data are for the production of single batches of two products, Mirlite and Subdue:

Mirlite Subdue
Gallons produced 50,000 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 15 13
Material moves 70 35

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

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