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Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 3,800 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: 3,800 units of Model A and 12,800 units of Model B. The following costs were incurred: Salaries/ Materials Wages Machining Other Total Cost Order processing $19,200 $19,200 Production planning 73,800 73,800 Purchasing 27,000 27,000 Stamping $355,000 35,500 $36,400 $18,600 445,500 Welding 150,000 42,000 42,000 12,000 246,000 Cladding 635,000 635,000 Testing 10,000 10,000 Packaging and shipping 10,000 10,000 Invoicing 13,600 13,600 Total $1,140,000 $231,100 $78,400 $30,600 $1,480,100 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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