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ACCT 21 - Week 05: Assignment Exercise A: Two-Stage ABC for Manufacturing (10pts) Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the last year: Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $600,000 12,000 setup hours Material handling $120,000 2,000 tons of materials Machine operation $500,000 10,000 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 Cams U2 Shafts Units produced 500 300 Machine hours 4 Direct labor hours 200 400 Direct labor cost $5,000 $10,000 Direct materials cost $30,000 $20,000 Tons of materials 13 8 Setup hours 3 7 Required: Determine the unit costs of C23 Cams and U2 Shafts using ABC