Value$-$Stream Average Costing, DBC$,$ ABC Costs as Benchmarks

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 $250$ of the basic model $($Model B$).$ The cycle time for Model A is four hours and that of Model B is three hours. The resource consumption patterns are shown as follows:

Costs of Value$-$

$\backslash$table$[[,$Model A$,$Model B$,$Stream Activities$],[$Cell manufacturing,$2,600$ min.,$7,600$ min.,,$ $255,000],[$Engineering$,65$ hrs$.,265$ hrs$.,$Dos,$33,000],[$Testing$,100$ hrs$.,200$ hrs$.,,28,200],[$Total$,,,,$$ $316,200]]$

Required:

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

$2$a$.$ Calculate the value$-$stream average product cost. If required, round vour answer to the nearest cent. $ per unit

$2$b$.$ Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

$3.$ Calculate the unit cost of each product using DBC$.$ Round intermediate calculations and your answers to the nearest cent if rounding is required.

Product Cost Per Unit

Model A

$ $$ per unit

Model B

$ $$ per unit

How does this compare with the ABC unit costs? Which of the three costing methods would you recommend, and why?

The DBC unit costs are both $$ to the ABC unit costs. This suggests that, in the presence of heterogeneity, using DBC for

$$ costing is better than $$ costing.

$4.$ Identify the data analytic types $($descriptive$,$ diagnostic, predictive, and prescriptive$)$ that apply for each of the following:

Note: See Exhibits $2\mathrm{.}5$ and $2\mathrm{.}6,$ for a review of data analytic types.

a$.$ The calculation of the unit costs by each of the three analytic costing methods.

b$.$ Assessing how well the products are grouped based on similarity.

c$.$ Comparison of DBC unit costs with ABC unit costs.

$q,$

$q,$

d$.$ Recommending and explaining which costing method should be used.

I need questions $1-4$ answered

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