Reference no: EM132438244

Question - Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 16,800 units of its aluminum wheels: 4,200 units of Model A and 12,600 units of Model B. The following costs were incurred:

	Materials	Salaries/Wages	Machining	Other	Total Cost
Order processing		$18,800			$18,800
Production planning		58,200			58,200
Purchasing		23,400			23,400
Stamping	$355,000	35,500	$36,400	$18,800	445,700
Welding	140,000	42,000	42,000	12,000	236,000
Cladding	440,000				440,000
Testing		11,000			11,000
Packaging and shipping		9,000			9,000
Invoicing		14,000			14,000
Total	$935,000	$211,900	$78,400	$30,800	$1,256,100

Required -

1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. Round your answer to the nearest dnllar arnnunt.

2. Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount.

3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B. Round your answers to the nearest dollar amount.

Calculate the total unit cost for Models A and B. Round your interim calculations and final answers to the nearest dollar amount.