Two-Stage ABC for Manufacturing Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following...
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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: ivity Cost Pool Activity Cost $900,000 Material handling 770,000 Machine operation 200,000 Activity Cost Driver 2,500 setup hours 5,000 material moves 20,000 machine hours Machine setup The following data are for the production of single batches of two products, Mirlite and Subdue Mirlite Subdue Gallons produed 50,000 3,00 Direct labor hours Machine hours Direct labor cost Direct materials cost $300,000 $100,000 Setup hours Material moves 400 250 800 250 $7,500 $5,000 60 35 Maleriai Tioves 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 0 Direct labor 0 Manufacturing overhead: 0 Machine setups Material handling Machine operation 0 Total cost per batch $ Mirlite Subdue Direct materials 0 Direct labor 0 Manufacturing overhead: Machine setups Material handling Machine operation 0 0 0 0 0 Total cost per batch$ Gallons produced 0 0 S Cost per gallon
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