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Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 18,200 units of its aluminum wheels: 4,200 units of Model
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 18,200 units of its aluminum wheels: 4,200 units of Model A and 14,000 units of Model B. The cycle 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: Order processing Production planning Purchasing Stamping Welding Cladding Testing Packaging and shipping Invoicing Total Required: Salaries/ Materials Wages $19,800 Machining Other Total Cost $19,800 345,000 345,000 23,400 23,400 $375,000 37,500 150,000 42,000 $36,000 42,000 $19,000 467,500 12,000 246,000 120,000 120,000 11,000 11,000 $645,000 9,000 12,800 $500,500 9,000 12,800 $78,000 $31,000 $1,254,500 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. Round your answers to the nearest dollar amount. Model A $ Unit Cost
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