Question
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 4,400 units of Model A
Value-Stream Costing Objective
During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 4,400 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 | $18,000 | $18,000 | |||||||
Production planning | 64,200 | 64,200 | |||||||
Purchasing | 27,000 | 27,000 | |||||||
Stamping | $370,000 | 37,000 | $36,800 | $18,400 | 462,200 | ||||
Welding | 150,000 | 42,000 | 42,000 | 12,000 | 246,000 | ||||
Cladding | 210,000 | 210,000 | |||||||
Testing | 10,000 | 10,000 | |||||||
Packaging and shipping | 8,000 | 8,000 | |||||||
Invoicing | 14,000 | 14,000 | |||||||
Total | $730,000 | $220,200 | $78,800 | $30,400 | $1,059,400 |
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 | $ |
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