Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost...
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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 $1,010,000 2,500 setup hours Material handling 880,000 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: Mirlite Subdue 50,000 30,000 Gallons produced Direct labor hours 400 250 Machine hours 800 250 Direct labor cost $13,000 $10,500 Direct materials cost $410,000 $210,000 Setup hours 15 12 Material moves 60 35 Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs Mirlite Subdue Direct materials 2$ 0 $ Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total cost per batch Gallons produced Cost per gallon 0 $ 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 $1,010,000 2,500 setup hours Material handling 880,000 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: Mirlite Subdue 50,000 30,000 Gallons produced Direct labor hours 400 250 Machine hours 800 250 Direct labor cost $13,000 $10,500 Direct materials cost $410,000 $210,000 Setup hours 15 12 Material moves 60 35 Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs Mirlite Subdue Direct materials 2$ 0 $ Direct labor Manufacturing overhead: Machine setups Material handling Machine operation Total cost per batch Gallons produced Cost per gallon 0 $
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Mirlite Subdue Direct Material Cost 410000 210000 Direct Labor cost 13000 10500 Overheads M... View the full answer
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Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
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