Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 15,800 units of its aluminum wheels: 3,600 units of Model A and 12,200 units of Model B. The following costs were incurred:

	Materials		Salaries/ Wages		Machining		Other		Total Cost
Order processing			$19,800						$19,800
Production planning			298,800						298,800
Purchasing			25,200						25,200
Stamping	$375,000		37,500		$37,400		$20,000		469,900
Welding	160,000		41,000		41,000		12,000		254,000
Cladding	455,000								455,000
Testing			10,000						10,000
Packaging and shipping			8,000						8,000
Invoicing			13,800						13,800
Total	$990,000		$454,100		$78,400		$32,000		$1,554,500

Required:

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. Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount.

	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. Round your answers to the nearest dollar amount.

	Unit Cost
Model A	$
Model B	$

Calculate the total unit cost for Models A and B. Round your interim calculations and final answers to the nearest dollar amount.

	Unit Cost
Model A	$
Model B	$