Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 15,600 units of its aluminum wheels: 3,400 units of Model A and 12,200 units of Model B. The following costs were incurred:

	Materials		Salaries/ Wages		Machining		Other		Total Cost
Order processing			$20,000						$20,000
Production planning			148,800						148,800
Purchasing			25,200						25,200
Stamping	$365,000		36,500		$38,000		$19,800		459,300
Welding	150,000		40,000		40,000		12,000		242,000
Cladding	675,000								675,000
Testing			10,500						10,500
Packaging and shipping			9,000						9,000
Invoicing			14,600						14,600
Total	$1,190,000		$304,600		$78,000		$31,800		$1,604,400

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	$