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Value-Stream Average Costing, ABC Costs as Benchmarks A value stream has three activities and two products. The units produced and shipped per week are 50

Value-Stream Average Costing, ABC Costs as Benchmarks

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 150 of the basic model (Model B). The resource consumption patterns are shown as follows:

Model A Model B Costs of Value- Stream Activities
Cell manufacturing 2,380 min. 7,140 min. $ 57,120
Engineering 65 hrs. 260 hrs. 26,975
Testing 105 hrs. 294 hrs. 29,127
Total $ 113,222

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 $fill in the blank 1 per unit
Model B $fill in the blank 2 per unit

2a. Calculate the value-stream average product cost. If required, round your answer to the nearest cent. $fill in the blank 3 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.

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