Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:

Activity Cost PoolActivity CostActivity Cost DriverMachine setup$720,00012,000 setup hours Material handling120,0003,000 tons of materials Machine operation680,00010,000 machine hours

The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August:

C23 CamsU2 ShaftsUnits produced500300Machine hours45Direct labor hours200400Direct labor cost$5,000$10,000Direct materials cost$20,000$15,000Tons of materials138Setup hours37

Determine the unit costs of C23 Cams and U2 Shafts using ABC. Round cost per gallon to two decimal places.

Product Costs C23 CamsU2 ShaftsDirect materials Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total job costs Units produced Cost per unit produced