Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 15,800 units of its aluminum wheels: 3,000 units of Model A

image text in transcribed
image text in transcribed
image text in transcribed
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 15,800 units of its aluminum wheels: 3,000 units of Model A and 12,800 units of Model B. The cyele time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000 . The following costs were incurred: 1. Assume initsally 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. 1 per unit 2. Model A is respons ble for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. 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. Model A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Reund your answers to the nearest dollar amount. 3. What if Model A and Model b are not homogeneous products? Assume the same materials usage as in Requirement 2 , Use Ofic to calculate the unit cost for the two products. Reund your interim calculations and final answers to the nearest dollar amount. Explain when and why this cost is mare accurate than the unit cost calculated in ferquirement 2. Explain wty oBC is a good approsch for value strearn cesting. DeC should be vsed if the products use DBC more accurate as it approximates ABC assignmenth. homogeneous heterogeneity Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2. Explain why De6C is a good approach for value-stream costing. DEC should be used if the products homogeneous products. Even when the products are use. DBC more accurate as it approximates ABC assignments. simple and easy hard and complex

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Cornerstone Of Business Decision Making

Authors: Jay S Rich, Jeff Jones, Linda Ann Myers

5th Edition

0357132696, 978-0357132692

More Books

Students also viewed these Accounting questions

Question

1. Name the five stages of team development.

Answered: 1 week ago