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:

$\backslash$table$[[$Activity Cost Pool,Activity Cost,Activity Cost Driver$],[$Machine setup,$$636,000,12,000$ setup hours$],[$Material handling,$156,000,2,000$ tons of materials$],[$Machine operation,$500,000,10,000$ machine hours$]]$

The following data are for the production of single batches of two products, C$23$ Cams and U$2$ Shafts during the month of August:

$\backslash$table$[[,$C$23$ Cams,U$2$ Shafts$],[$Units produced,$500,300],[$Machine hours,$4,5],[$Direct labor hours,$200,400],[$Direct labor cost,$$8,000,$$$13,000$