Solution-Determine the batch and unit costs per gallon

Determine the batch and unit costs per gallon

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Reference no: EM131772295

Problem - Two-Stage Activity-Based Costing for Manufacturing

Assume Sherwin-Williams Company, a large print 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	820,000	5,000 materials 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	50,000	30,000
Direct labor hours	400	250
Machine hours	800	250
Direct labor cost	$10,000	$7,500
Direct Materials cost	$350,000	$150,000
Setup hours	15	12
Material moves	60	35

Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC.

Reference no: EM131772295

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Determine the batch and unit costs per gallon : Problem - Two-Stage Activity-Based Costing for Manufacturing. Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC

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Determine the batch and unit costs per gallon

Reference no: EM131772295

Reference no: EM131772295

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