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24 September, 09:58

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 the total cost for each value chain category. Data Amount ($) Delivery expense to customers via UPS 8Salaries of salespeople 3Chipset (the set of chips on the phone's motherboards) 58Exterior case for phone 9Assembly-line worker; s wages 9Technical custumer support hotline 6Depreciation on plant and equipment 75Rearrangement of production process 5Salaries of scientist 14

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  1. 24 September, 11:26
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    Delivery expense to customers via UPS = 8 - Distribution

    Salaries of salespeople = $3 - Marketing

    Chip set (the set of chips on the phone's motherboards) = $58 - Direct Materials

    Exterior case for phone = $9 - Direct Materials

    Assembly-line worker; s wages = $9 - Direct Labor

    Technical customer support hotline = $6 - Customer Service

    Depreciation on plant and equipment = $75 - Manufacturing Overhead

    Rearrangement of production process = $5 - Design

    Salaries of scientist = $14 - R & D

    Total cost for each value chain category

    Direct Labor: $9

    Direct Materials: $9 + $58 = $67

    Manufacturing Overhead: $75

    Customer Service: $6

    Design: $5

    R & D: $14

    Marketing: $3

    Distribution: $8
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