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 Activity Cost

Activity Cost Driver

Machine setup $$930,0002,500$ setup hours

Material handling $800,0005,000$ material moves

Machine operation $200,00020,000$ machine hours

The following data are for the production of single batches of two products, Mirlite and Subdue:

Mirlite Subdue

Gallons produced $50,00030,000$

Direct labor hours $400250$

Machine hours $800250$

Direct labor cost $$8,500$ $$6,000$

Direct materials cost $$330,000$ $$130,000$

Setup hours $1512$

Material moves $6035$

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 Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Manufacturing overhead:

Machine setups Answer

$0$

Answer

$0$

Material handling Answer

$0$

Answer

$0$

Machine operation Answer

$0$

Answer

$0$

Total cost per batch Answer

$0$

Answer

$0$

Gallons produced Answer

$0$

Answer

$0$

Cost per gallon Answer

$0$

Answer

$0$