accounting help Suppose the cell phone manufacturer Orange Electronics provides

Question

accounting help Suppose the cell phone manufacturer Orange Electronics provides the following information for its costs last month(in millions) Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead, Then calculate total cost for each value chain category. (Enter amounts in millions. Leave cells black that do not require numerical inputs.) Orange Electronics Value Chain Cost Classification

Explanation / Answer

The given cost are allocated in following table.

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Orange Electronics Value Chain Classifications Cost R & D Design Productions Marketing Distribution Customer Service Direct Material Direct Labor Manufacturing Overhead Delevery Expenses UPS $ 7 Salries of Sales People $5 Chip Set $57 Exterior Case $6 Assembly line workers $39 Wages $11 Technical customer support hotline $4 Depreciation on plant and equipment $65 Rearrange production process to accommodate new robot $3

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$4 Salaries of scientists who developed new model $14 Total Cost $20 0 $57 $50 $68 $9 $7 $4

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