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 Machine setup Material handling Machine operation Activity Cost Activity Cost Driver 900,000 2,500 setup hours 770,000 5,000 material moves 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 400250 800 250 Direct labor costs7.500 5,000 Direct materials cost $300,000 $100,000 12 35 Direct labor hours Machine hours Setup hours 15 Material moves 60 Direct materials cost Setup hours Material moves $300,000 15 60 $100,000 12 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 Mirlite Subdue Direct materials Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Mirlite Subdue Direct materials 0 0 Direct labor 0 Manufacturing overhead: Machine setups Material handling 0 0 0 0 Machine operation Total cost per batch $ Gallons produced Cost per gallon