Question
In: Accounting
A value stream has three activities and two products. The units produced and shipped per week...
A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and 150 of the basic model (Model B). The resource consumption patterns are shown as follows:
Model A |
Model B |
Costs of Value- Stream Activities |
||||
| Cell manufacturing | 2,380 | min. | 7,140 | min. | $ | 57,120 |
| Engineering | 65 | hrs. | 234 | hrs. | 26,013 | |
| Testing | 95 | hrs. | 247 | hrs. | 27,360 | |
| Total | $ | 110,493 | ||||
Required:
1. Calculate the ABC product cost for Models A and 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 product
cost. If required, round your answer to the nearest cent.
$ per unit
Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.
- Select your answer -The two value-stream products are similarThe two value-stream products are not similarNot enough information is given to answer
Solutions
Expert Solution
1
|
Per unit product cost |
Model A |
Model B |
|
|
550.70 |
553.05 |
||
|
27535.00 |
82958.00 |
2
|
Average cost (550.70*40)+(553.05*150)/(50+150) |
552.47 |
Working notes for the above answer is as under
ekkarill92 answered 11 months agoRelated Solutions
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