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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 Driver Activity Cost Pool Activity Cost Machine setup Material handling Machine operation $1,000,000 870,000 200,000 2,500 setup hours 5,000 material moves 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 30,000 400 250 Direct labor hours Machine hours Direct labor cost 800 25 11,000 $8,500 Direct materials cost $400,000 $200,000 12 35 Setup hours 15 Material moves 60
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