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Value$-$Stream Average Costing, ABC, DBC

A value stream has three activities and two products. The units produced and shipped per week are $50$ of the limited model $($Model K$),$ characterized by special additional features, and $150$ of the regular model $($Model R$),$ with only basic features. The conversion cost resource consumption patterns are shown as follows:

Line Item Description

Model K

Model R Costs of Value

$-$Stream Activities

Cell manufacturing $2,700$ minutes $2,100$ minutes $$19,200$

Engineering $65$ hours $15$ hours $3,400$

Testing $25$ hours $55$ hours $3,000$

Total $$25,600$

Required:

$1.$ Calculate the ABC product cost $($conversion cost$)$ for Models K and R$.$ Round dollars to $2$ decimal places.

Model K fill in the blank $1$ of $2$$

$55\mathrm{.}8$

per unit

Model R fill in the blank $2$ of $2$$

$14\mathrm{.}47$

per unit