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During the week of June 12, Harrison Manufacturing produced and shipped 16,800 units of its aluminum wheels: 3,600 units of Model A and 13,200 units

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During the week of June 12, Harrison Manufacturing produced and shipped 16,800 units of its aluminum wheels: 3,600 units of Model A and 13,200 units of Model B. The cycle time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000 . The following costs were incurred: 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 dollar amount. per unit 2. Modei A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. 3. What if Model A and Model B are not homogeneous products? Assume the same materials usage as in Requirement 2 . Use DBC to calculate the unit cost for the two products. Round your interim calculations and final answers to the nearest dollar amount. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2. Explain why DBC is a good approach for value-stream costing. DBC should be used if the products homogeneous products. Even when the products are is to use. DBC more accurate as it approximates ABC assignments

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