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Data table Plant janitors' wages Delivery truck drivers' wages Payment for new recipe. Depreciation on delivery trucks Plant utilities Lime flavoring. Rearrangment of plant layout

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Data table Plant janitors' wages Delivery truck drivers' wages Payment for new recipe. Depreciation on delivery trucks Plant utilities Lime flavoring. Rearrangment of plant layout Bottles Salt. Sales commissions. Production costs of "cents-off" store coupons for customers...\$ 530 Lemon syrup. 13,000 Replacement of products with expired dates upon customer complaint. Depreciation on plant and equipment Wages of workers who mix syrup. 45 Customer hotline. 2,800 Freight-in on materials. Requirements 1. Classify each of the listed costs according to its category in the value chain (R\&D, Design, Production, Marketing, Distribution, or Customer Service.) 2. Further break down production costs into three subcategories: Direct Materials (DM), Direct Labor (DL), or Manufacturing Overhead (MOH). 3. Compute the total costs for each value chain category. 4. How much are the total product costs? 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? KaZcom Cola produces a iemon-ime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The compary enhances the combined syrup with cattene. Finally, the corrpany dilutes the miature with carbonaled waler. Kazosm Cola incurs the following costs (in thousands): (Click the kon lo view the costs.) Read the coqurements Requirements 1,2 and 2. Classfy each of these costs according to its category in the value chain and turther break dosn production costs into three subcategaries: Direct Materials (DM), Direct

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