Two-Stage ABC for Manufacturing Assume omega Company, a large paint manufacturer, has determined the following...
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Accounting
Two-Stage ABC for Manufacturing Assume omega 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
$950,000
2,500 setup hours
Material handling
520,000
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
Gallons produced
30,000
20,000
Direct labor hours
500
250
Machine hours
800
350
Direct labor cost
$10,000
$7,500
Direct materials cost
$350,000
$150,000
Setup hours
15
12
Material moves
40
35
Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. (Round your answers to the nearest cent.) Mirlite Answer per gallon Subdue "Answer" per gallon
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