Question
Value-Stream Average Costing, DBC, ABC Costs as Benchmarks A value stream has three activities and two products. The units produced and shipped per week
Value-Stream Average Costing, DBC, 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 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 Cell manufacturing 2,500 min. 7,500 min. $100,000 Engineering 60 hrs. 260 hrs. Testing 100 hrs. 200 hrs. 38,400 30,000 $168,400 Total
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