Danone produces different kind of milkshakes, the production process starts with workers mixing milk with different kind of fruits, fruits flavors and other ingredients in a secret recipe. The company enhance the combined mixture with natural flavors. Finally, the company puts the mixture in special pots.

Danone incurs the following costs:

Sugar	$30
Wages of workers who do the mixture	$6,400
Marketing department salaries	$730
Delivery truck drivers wages	$150
Milk	$5,000
Fruits flavorings	$780
Lift truck operators salaries	$1,120
Payment for new recipe	$750
Salaries of factory cleaners	$750
Yoghurt pots	$1,300
Sales commissions	$250
Customers services	$210
Depreciation on delivery trucks	$230
Depreciation on equipment	$2,700
Natural fruits flavors	$350
Insurance on plant building	$250
Fruits	$16,000

Instructions

1. Classify each of the listed costs into three subcategories: direct materials, direct labor, manufacturing overhead:

	Direct materials	Direct labor	Manufacturing overhead
Sugar
Wages of workers who do the mixture
Marketing department salaries
Delivery truck drivers wages
Milk
Fruits flavorings
Lift truck operators salaries
Payment for new recipe
Salaries of factory cleaners
Yoghurt pots
Sales commissions
Customers services
Depreciation on delivery trucks
Depreciation on equipment
Natural fruits flavors
Insurance on plant building
Fruits

2. How much the total cost for each value chain category?

3. If Danone will produce 20 000 pots of milkshake this year, how much the average cost per pot?

Note: Answers Should be in Word Version Format Please