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 $960,000 2,500 setup hours Material handling 830,000 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 30,000 Direct labor hours 400 250 Machine hours 800 250 Direct labor cost $9,500 $7,000 Direct materials cost $360,000 $160,000 Setup hours 15 12 Material moves 60 35 Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs Direct materials $ Mirlite Subdue 360,000 $ $ 160,000 9,500 7,000 OX OX OX OX Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total cost per batch $ Gallons produced Cost per gallon $ 0 x OX LA 0 X $ OX OX OX $ TA 0X $ 0 X Check Stage 2 ABC for a Wholesale Company Information is presented for the activity costs of Oxford Wholesale Company: Activity Cost per Unit of Activity Driver Customer relations per month $85.00 per customer Selling 0.04 per sales dollar Accounting 5.00 per order Warehousing 0.50 per unit shipped Packing 0.25 per unit shipped Shipping 0.20 perpound shipped The following information pertains to Oxford Wholesale Company's activities in Massachusetts for the month of March 2016 Number of orders Sales revenue Cost of goods sold Number of customers Units shipped Pounds shipped 235 $126,200 $70,940 25 4,700 70,500 Determine the profitability of sales in Massachusetts for March 2016. ta 0 Oxford Wholesale Company Massachusetts Profitability of Sales March 2016 Sales revenue $ Less: Cost of goods sold $ 0 Customer relations 0 Selling expenses 0 Accounting 0 Warehousing 0 Packing 0 Shipping 0 Profitability of sales $ 0 0 LA Check