Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 16,000 units of its aluminum wheels: 3,800 units of Model A and 12,200 units of Model B. The cycle time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000. The following costs were incurred: Order processing Production planning Purchasing Stamping Welding Cladding Testing Packaging and shipping Invoicing Total Materials $365,000 140,000 335,000 Unit Cost $840,000 Salaries/ Wages $18,000 321,600 25,200 36,500 40,000 11,000 10,000 13,800 $476,100 Machining $37,000 40,000 $77,000 Other $18,400 12,000 $30,400 Total Cost $18,000 321,600 25,200 456,900 232,000 335,000 11,000 10,000 13,800 $1,423,500 Required: 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. 89 per unit 2. Model A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Required: 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. 89 per unit $ 2. Model A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Model A Model B Model A Unit Cost 3. What if Model A and Model B are not homogeneous products? Assume the same materials usage as in Requirement 2. Use DBC to calculate the unit cost for the two products. Round your interim calculations and final answers to the nearest dollar amount. Model B 75 X Unit Cost $ 583,500 X 919,500 X Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2. Explain why DBC is a good approach for value-stream costing. DBC should be used if the products are not it is simple and easy homogeneous products. Even when the products are homogeneous more accurate as it approximates ABC assignments. DBC is to use.