P19-1B Healthy Foods produces canned chicken la king-chicken, mushrooms, and bell peppers in a cream sauce. The production process starts with raw chicken that workers debone. Cream sauce is prepared, the chicken is cooked, and the two are combined with the vegetables. Because chickens naturally vary in salt content, the amount of salt added varies from batch to batch. Healthy Foods incurs the following costs (in thousands): Plant utilities.. $ 900 Depreciation on plant and equipment... 2,500 Production costs of "cents-off" store coupons for customers Delivery truck drivers' wages S 600 250 Payment to chef for developing Cream 1,300 new low-fat recipe. 1,200 Sales commissions: 400 Salt....... 20 Plant janitors' wages. 1,000 Replace products with expired dates upon customer Wages of workers who debone chicken 10,000 complaint 50 Customer hotline for recipes Rearranging plant layout to and problems. 200 smooth production flow..... 1,100 Depreciation on delivery Chicken. 18.000 truck. 150 Mushrooms and peppers 1,000 Freight-in. 1.500 Total $40.170 Required 1. Use the following format to classify each of these costs according to its place in the value chain. (Hint: You should have at least one cost in each value-chain function.) Design of Products Production or R&D Processes Direct Materials Direct Labor Manufacturing Overhead Marketing Distribution Customer Service 2. Compute the total costs for each value-chain category. 3. How much are the total inventoriable product costs? 4. Suppose the managers of the R&D and design functions receive year-end bonuses based on meeting their own unit's target cost reductions. What are they likely to do? How might this affect costs incurred in other elements of the value chain?