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 con- sumption patterns are shown as follows: Costs of Value- Model A Model B Stream Activities Cell manufacturing Engineering Testing Total $ 76,800 27,200 24,000 2,400 min. 7,200 min. 60 hrs. 260 hrs. 100 hrs. 220 hrs. $128,000 Required: 1. Calculate the ABC product cost for Models A and B. 2. Calculate the value-stream average product cost. Assuming reasonable stability in the con- sumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

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 con- sumption patterns are shown as follows: Costs of Value- Model A Model B Stream Activities Cell manufacturing Engineering Testing Total $ 76,800 27,200 24,000 2,400 min. 7,200 min. 60 hrs. 260 hrs. 100 hrs. 220 hrs. $128,000 Required: 1. Calculate the ABC product cost for Models A and B. 2. Calculate the value-stream average product cost. Assuming reasonable stability in the con- sumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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