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 200 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:

	Model A		Model B		Costs of Value- Stream Activities
Cell manufacturing	2,400	min.	7,200	min.	$	96,000
Engineering	60	hrs.	260	hrs.		40,000
Testing	100	hrs.	220	hrs.		30,000
Total					$	166,000

Required:

1. Calculate the ABC product cost for Models A and B. Round your answers to two decimals, if required.

	Product Cost Per Unit
Model A	$fill in the blank 1 per unit
Model B	$fill in the blank 2 per unit

2. Calculate the value-stream average product cost. $fill in the blank 3 per unit

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

	Product Cost Per Unit
Model A	$fill in the blank 5 per unit
Model B	$fill in the blank 6 per unit