Value-Stream Average Costing, 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 150 of the basic model (Model B). The resource consumption patterns are shown as follows:

	Model A		Model B		Costs of Value- Stream Activities
Cell manufacturing	2,355	min.	7,065	min.	$	65,940
Engineering	50	hrs.	180	hrs.		20,700
Testing	95	hrs.	266	hrs.		25,992
Total					$	112,632

Required:

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