Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 15,400 units of its aluminum wheels: 3,400 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			$20,000						$20,000
Production planning			294,600						294,600
Purchasing			22,500						22,500
Stamping	$360,000		36,000		$36,600		$18,800		451,400
Welding	140,000		42,000		42,000		12,000		236,000
Cladding	730,000								730,000
Testing			10,000						10,000
Packaging and shipping			10,000						10,000
Invoicing			13,800						13,800
Total	$1,230,000		$448,900		$78,600		$30,800		$1,788,300

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	$