Determine the batch and unit costs per gallon

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Reference no: EM133269761

Two-Stage ABC for Manufacturing

Assume Sherwin-Williams, 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 $210,000 3,500 setup hours
Material handling 468,000 6,500 material moves
Machine operation 1,026,270 12,670 machine hours

The following data are for the production of single batches of two of its products, Cashmere and Emerald:

Cashmere Emerald
Gallons produced 20,000 25,000
Direct labor hours 200 220
Machine hours 100 120
Direct labor cost $ 5,000 $ 5,500
Direct materials cost $282,940 $ 299,090
Setup hours 24 26
Material moves 35 40

Determine the batch and unit costs per gallon of Cashmere and Emerald using ABC. (Round your answers to the nearest cent.)
Cashmere
$Answer per gallon
Emerald
$Answer per gallon

Reference no: EM133269761

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