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Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 18,600 units of its aluminum wheels: 5,000 units of Model A
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 18,600 units of its aluminum wheels: 5,000 units of Model A and 13,600 units of Model B. The following costs were incurred Materials Salaries/ Machining Other Total Cost Wages $19,400 304,800 23,400 38,000 17,500 Order processing Production planning Purchasing Stamping Welding Cladding Testing Packaging and shipping Invoicing $19,400 304,800 23,400 473,600 184,500 65,000 10,000 10,000 14,200 $1,104,900 $380,000 140,000 65,000 $37,600 15,000 $18,000 12,000 10,000 10,000 14,200 $437,300 Total Required: Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations 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. $585,000 $52,600 $30,000 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
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