Question - Value-Stream Costing Objective

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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.

Reference no: EM132438244

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