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A value stream has three activities and two products. The units produced and shipped per week...

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Accounting

A value stream has three activities and two products. The unitsproduced and shipped per week are 50 of the deluxe model (Model A)and 150 of the basic model (Model B). The resource consumptionpatterns are shown as follows:


Model A
Model B		Costs of Value-
Stream Activities
Cell manufacturing2,380min.7,140min.$57,120
Engineering65hrs.234hrs.26,013
Testing95hrs.247hrs.27,360
   Total$110,493

Required:

1. Calculate the ABC product cost for Models Aand B. If required, round your answers to the nearest cent.

Product Cost Per Unit
Model A$ per unit
Model B$ per unit

2. Calculate the value-stream average productcost. If required, round your answer to the nearest cent.
$ per unit

Assuming reasonable stability in the consumption patterns of theproducts and product mix, assess how well the products are groupedbased on similarity.

- Select your answer -The two value-stream products aresimilarThe two value-stream products are not similarNot enoughinformation is given to answer

Answer & Explanation Solved by verified expert
4.3 Ratings (532 Votes)
1Per unit product costModel    See Answer
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