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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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