Business, 21.11.2019 22:31 tahtahtw4887

Two stage abc for manufacturing
assume sherwin-williams company, a large paint manufacturer, has determined the following activity costs 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 purchased 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.

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Two stage abc for manufacturing
assume sherwin-williams company, a large paint manufacturer, h...

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