Intel Corporation operates semiconductor fabrication plants globally. In June 2027, the company incurs the following operating costs related to its manufacturing operations:

• Fabrication Plant Costs: $50 million
• Quality Assurance: $15 million
• Research and Development: $20 million
• Supply Chain Management: $10 million
• Employee Training: $5 million

Required:

• Allocate operating costs to each semiconductor plant using the direct method.
• Determine the cost per semiconductor chip produced assuming 1 billion chips manufactured.
• Analyze the cost structure of operating costing in semiconductor manufacturing.
• Discuss the role of cost allocation in managing production costs at Intel Corporation.
• Prepare an operating costing statement for Intel Corporation.