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:

$\backslash$table$[[$Activity Cost Pool,Activity Cost,Activity Cost Driver$],[$Machine setup,$$1,000,000,2,500$ setup hours$],[$Material handling,$870,000,5,000$ material moves$],[$Machine operation,$200,000,20,000$ machine hours$]]$

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

$\backslash$table$[[,$Mirlite,Subdue$],[$Gallons produced,$50,000,30,000],[$Direct labor hours,$400,250],[$Machine hours,$800,250],[$Direct labor cost,$$11,000,$$$8,500$