Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 15,800 units of its aluminum wheels: 3,800 units of Model A and 12,000 units of Model B. The following costs were incurred:

Materials Salaries/ Wages Machining Other Total Cost Order processing $19,200 $19,200 Production planning 309,000 309,000 Purchasing 22,500 22,500 Stamping $360,000 36,000 $36,800 $19,200 452,000 Welding 140,000 40,000 40,000 12,000 232,000 Cladding 585,000 585,000 Testing 10,000 10,000 Packaging and shipping 8,000 8,000 Invoicing 15,000 15,000 Total $1,085,000 $459,700 $76,800 $31,200 $1,652,700

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 $