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 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 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
