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A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and
A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and 250 of the basic model (Model B). The cycle time for Model A is four hours and that of Model B is three hours. The resource consumption patterns are shown as follows: Costs of Value- Model A Model B Stream Activities 2,500 min. 7,500 min. $ 300,000 Cell manufacturing Engineering Testing 55 hrs. 255 hrs. 37,200 95 hrs. 195 hrs. 27,260 Total $364,460 Required: 1. Calculate the ABC product cost for Models A and B. If required, round your answers to the nearest cent. Product Cost Per Unit Model A per unit Model B $ per unit 2a. Calculate the value-stream average product cost. If required, round your answer to the nearest cent. $ per unit 2b. Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity. The two value-stream products are similar The two value-stream products are not similar Not enough information is given to answer 3. Calculate the unit cost of each product using DBC. Round intermediate calculations and your answers to the nearest cent if rounding is required. Product Cost Per Unit Model A per unit Model B $ per unit
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