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Two-Stage ABC for Manufacturing Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity...

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:

Activity Cost Pool Activity Cost Activity Cost Driver
Machine setup $990,000 3,000 setup hours
Material handling 840,000 6,000 material moves
Machine operation 200,000 25,000 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 300 150
Machine hours 650 200
Direct labor cost $ 12,300 $ 9,500
Direct materials cost $240,000 $ 110,000
Setup hours 12 10
Material moves 40 25


Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. (Round your answers to the nearest cent.)

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Expert Solution

ekkarill92 answered 1 month ago
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