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ssume Selvel Paints, a local paint manufacturer, has determined the following activity cost pools and cost driver levels for the current quarter: Activity cost poolActivity costActivity cost driverMachine setup$950,0002,500 setup hoursMaterial handling520,0005,000 material movesMachine operation200,00020,000 machine hours   The following data are for the production of single batches of two products, Deepsea and Sunred:  Deep sea Sunred Gallons produced30,00020,000Direct labor hours500250Machine hours800350Direct labor cost$10,000$7,500Direct materials cost$350,000$150,000Setup hours1512Material moves4035   Determine the unit costs per gallon of product Deepsea using ABC

Management Dec 08, 2020

ssume Selvel Paints, a local paint manufacturer, has determined the following activity cost pools and cost driver levels for the current quarter:

Activity cost poolActivity costActivity cost driverMachine setup$950,0002,500 setup hoursMaterial handling520,0005,000 material movesMachine operation200,00020,000 machine hours

 

The following data are for the production of single batches of two products, Deepsea and Sunred:

 Deep sea Sunred Gallons produced30,00020,000Direct labor hours500250Machine hours800350Direct labor cost$10,000$7,500Direct materials cost$350,000$150,000Setup hours1512Material moves4035

 

Determine the unit costs per gallon of product Deepsea using ABC. (Round your answers to the nearest cent.) 

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