i Requirements 1. Classify each of these costs according to its place in the value chain (R&D, Design, Production, Marketing, Distribution, or Customer Service). (Hint: You should have at least one cost in each value chain function.) 2. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. 3. Compute the total costs for each value chain category. 4. How much are the total product costs? 5. How much are the total prime costs? 6. How much are the total conversion costs? Data Table Delivery expense to customers via UPS 10 Salaries of salespeople 3 Chipset (the set of chips used on a phone's motherboard) 61 Exterior case for phone Assembly-line workers' wages Technical customer support hotline. 7 Depreciation on plant and equipment 65 Rearrangement of production process to accommodate new robot. $ 1-800 (toll-free) line for customer orders.. 5 Salaries of scientists who developed new model. 12 LC LC EA process 1-800 (toll-free) line for 5 customer orders 12 Scientists' salaries 10 $ 12 $ 70 65 $ 7 Total costs Production Manufacturing Overhead Direct Direct Customer Design Materials Cost R and D Labor Marketing Distribution Service Requirement 4. How much are the total product costs? First determine the formula, then calculate the total product costs. (Enter amounts in millions.) Total product cost + Choose from any list or enter any number in the input fields and then click Check Answer A EA te ce