Need answers to exercise 15.2

Value-Stream Costing Objective Cornerstone Exercise 15.2 During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its Required LECTIVE 1. Calc STONE 15.2aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs 2. Cale char 3. Wh att me were incurred: Salaries/ Materials Wages Machining Other Total Cost 18,000 36,000 27,000 18,000 Order processing Production planning Purchasing Stamping Welding Cladding Testing 36,000 27,000 S375,000 37,500 36,000 $18,000 466,500 EXI 246,000 75,000 42,000 12,000 150,000 42,000 75,000 10,500 Exer Heli 10,500 9,000 12,000 $30,000 $900,000 Packaging and shipping Invoicing 9,000 12,000 600,000 $192,000 Totals $78,000 Required: Pro Mo 1. Assume initially that the value-stream costs and total units shipped apply only to one model 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the ra- 3. (a single-product value stream). Calculate the unit cost, and comment on its accuracy tionale for using units shipped instead of units produced in the calculation. Whatif Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adiusted for this condition