Problem: During the week of June 12, Harrison Manufacturing produced and shipped 16,800 units of its aluminum wheels: 4,200 units of Model A and 12,600 units of Model B. The following costs were incurred:
|
|
Materials
|
Salaries/Wages
|
Machining
|
Other
|
Total Cost
|
|
Order processing
|
|
$18,800
|
|
|
$18,800
|
|
Production planning
|
|
58,200
|
|
|
58,200
|
|
Purchasing
|
|
23,400
|
|
|
23,400
|
|
Stamping
|
$355,000
|
35,500
|
$36,400
|
$18,800
|
445,700
|
|
Welding
|
140,000
|
42,000
|
42,000
|
12,000
|
236,000
|
|
Cladding
|
440,000
|
|
|
|
440,000
|
|
Testing
|
|
11,000
|
|
|
11,000
|
|
Packaging and shipping
|
|
9,000
|
|
|
9,000
|
|
Invoicing
|
|
14,000
|
|
|
14,000
|
|
Total
|
$935,000
|
$211,900
|
$78,400
|
$30,800
|
$1,256,100
|
Required:
Question 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
Question 2: Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount.
Question 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.
Calculate the total unit cost for Models A and B. Round your interim calculations and final answers to the nearest dollar amount.
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