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Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost poolsSetup$ 56,000Material handling12,800Machine operation240,000Packing60,000Total indirect
Two-Stage ABC for Manufacturing
Merlot Company has determined its activity cost pools and cost drivers to be the following:
Cost poolsSetup$ 56,000Material handling12,800Machine operation240,000Packing60,000Total indirect manufacturing costs$ 368,800Cost driversSetups400Material moves800Machine hours16,000Packing orders1,000
One product made by Merlot, metal casements, used the following activities during the period to produce 500 units:
Setups20Material moves80Machine hours1,900Packing orders150
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