During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 4,600 units of Model A and 12,000 units of Model B. The following costs were incurred:

	Materials		Salaries/ Wages		Machining		Other		Total Cost
Order processing			$19,600						$19,600
Production planning			303,000						303,000
Purchasing			23,400						23,400
Stamping	$350,000		35,000		$37,200		$18,800		441,000
Welding	160,000		42,000		12,000		256,000		360,000
Cladding	10,000								10,000
Testing			10,000						10,000
Packaging and shipping			10,000						10,000
Invoicing			12,600						12,600
Total	$870,000		$455,600		$79,200		$30,800		$1,435,600

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.
$ per unit

2. Calculate the unit cost for Models A and B.

	Unit Cost
Model A	$
Model B	$

3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B.

	Unit Cost
Model A	$
Model B	$

Calculate the total unit cost for Models A and B.

	Unit Cost
Model A	$
Model B	$