Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 16,800 units of its aluminum wheels: 3,000 units of Model A and 13,800 units of Model B. The following costs were incurred:

	Materials		Salaries/ Wages		Machining		Other		Total Cost
Order processing			$19,400						$19,400
Production planning			181,200						181,200
Purchasing			27,000						27,000
Stamping	$375,000		37,500		$37,600		$18,800		468,900
Welding	140,000		42,000		42,000		12,000		236,000
Cladding	505,000								505,000
Testing			11,000						11,000
Packaging and shipping			10,000						10,000
Invoicing			12,600						12,600
Total	$1,020,000		$340,700		$79,600		$30,800		$1,471,100

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	$