(Algorithmic) Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 4,400 units of Model A and 12,800 units of Model B.
The following costs were incurred: Materials Salaries/ Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 304,800 304,800 Purchasing 23,400 23,400 Stamping $380,000 38,000 $38,000 $19,000 475,000 Welding 140,000 17,500 15,000 12,000 184,500 Cladding 65,000 65,000 Testing 10,000 10,000 Packaging and shipping 10,000 10,000 Invoicing 14,200 14,200 Total $585,000 $437,300 $53,000 $31,000 $1,106,300 Required:
Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations.
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. $ per unit
2. Calculate the unit cost for Models A and B. 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. Unit Cost Model A $ Model B $ Calculate the total unit cost for Models A and B. Unit Cost Model A $ Model B $