3. Calculate the cycle time for each product by dividing the total hours used for each product by the units produced for each product. Now calculate the DBC cost for each product. Comment on the significance of DBC for this setting A value stream has three activities and two products. The unitsproduced and shipped per week are 50 of the deluxe model (ModelA) and 150 of the basic model (Model B). The resourceconsumption patterns are shown as follows:Costs of Value-Model AModel BStream ActivitiesCell manufacturingEngineeringTesting2,400 min.60 hrs.7,200 min.260 hrs.S 76,80027,20024,000100 hrs.220 hrs.Total$128,000Required:1. Calculate the ABC product cost for Models A and B.2. Calculate the value-stream average product cost.Assuming reasonable stability in the consumption patternsof the products and product mix, assess how well theproducts are grouped based on similarity.

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Description: 3. Calculate the cycle time for each product by dividing the total hours used for each product by the units produced for each product. Now calculate the DBC cost for each product. Comment on the significance of DBC for this setting A value stream has

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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: Costs of Value Stream Acthities Model A Modd B 2,400 min. Cell manufacturing Engineering Testing Total $ 76,800 27,200 24,000 $128,000 7,200 min. 260 hrs. 60 hrs. 100 hrs. 220 hrs. Required: 1. Calculate the ABC product cost for Models A and B. 2. Calculate the value-stream average product cost. Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

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: Costs of Value Stream Acthities Model A Modd B 2,400 min. Cell manufacturing Engineering Testing Total $ 76,800 27,200 24,000 $128,000 7,200 min. 260 hrs. 60 hrs. 100 hrs. 220 hrs. Required: 1. Calculate the ABC product cost for Models A and B. 2. Calculate the value-stream average product cost. Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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