Requirements? 1, 2 and 3. Classify each of these costs according to its category
ID: 2393348 • Letter: R
Question
Requirements? 1, 2 and 3. Classify each of these costs according to its category in the value chain and further breakdown production costs into three? subcategories: Direct Materials? (DM), Direct Labor? (DL), or Manufacturing Overhead? (MOH). Compute the total costs for each value chain category. ?(Leave cells blank that do not require numerical? inputs.)
Blast Cola
Value Chain Cost Classification
Production
Direct
Direct
Manufacturing
Customer
Cost
R & D
Design
Materials
Labor
Overhead
Marketing
Distribution
Service
Plant janitors' wages
Truck drivers' wages
Payment for new recipe
Depreciation on trucks
Plant utilities
Lime flavoring
Rearranging plant layout
Bottles
Salt
Sales commissions
Production costs of
"cents-off" coupons
Lemon syrup
Replace products with
expired dates
Depreciation on plant
and equipment
Wages of workers who
mix syrup
Customer hotline
Freight-in on materials
Total costs
Requirement 4. Determine the? formula, then calculate the total inventoriable product costs.
+
+
=
Total inventoriable product costs
+
+
=
Requirement 5. Suppose the managers of the? R&D and design functions receive? year-end bonuses based on meeting their? unit's target cost reductions. What are they likely to? do? How might this affect costs incurred in other elements of the value? chain?
The managers of? R&D and Design are likely to
?
cut their costs
increase their costs
make no changes to costs
. This can
?
decrease
increase
costs of later? value-chain elements.
Select the answer that shows how cutting costs might affect other elements of the value chain.
A.
If the recipe is not designed so the soda is easy to? produce, or if the production process is not well? laid-out, production costs will be higher than they need to be.
B.
If the recipe is not adjusted to consumer? tastes, more marketing may be required? and/or sales may decline.
C.
If cutting? R&D and Design costs leads to lower quality? soda, customer service costs such as returns may also increase.
D.
All of the above
Blast Cola
Value Chain Cost Classification
Production
Direct
Direct
Manufacturing
Customer
Cost
R & D
Design
Materials
Labor
Overhead
Marketing
Distribution
Service
Explanation / Answer
Blast Cola Value Chain Cost Classification Production Direct Direct Manufacturing Customer Cost R & D Design Materials Labor Overhead Marketing Distribution Service Plant janitors' wages $1,000 Truck drivers' wages $255 Payment for new recipe $1,260 Depreciation on trucks $100 Plant utilities $350 Lime flavoring $980 Rearranging plant layout $1,200 Bottles $1,390 Salt $30 Sales commissions $525 Production costs of "cents-off" coupons $730 Lemon syrup $14,000 Replace products with expired dates $55 Depreciation on plant and equipment $55 Wages of workers who mix syrup $3,000 Customer hotline(Amount not given) X Freight-in on materials(Amount not given) X Total costs $ 1,260 $ 1,200 $ 15,010 $ 3,000 $ 2,795 $ 525 $ 355 $ 785 4 Total Inventoriable product cost Direct Materials Plus Direct Labor Plus Manufacturing Overhead Total Inventoriable Product Costs $ 15,010 $ 3,000 $ 2,795 $ 20,805 5 The managers of? R&D and Design are likely to cut their costs . This can increase costs of later value-chain elements D. All of the above
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.