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Part $1$

ShaZam Cola produces a$$ lemon$-$lime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The company enhances the combined syrup with caffeine.$$ Finally, the company dilutes the mixture with carbonated water. ShaZam Cola incurs the following costs$($in thousands$)$:

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Part $1$

Requirements$1,2$ and $3.$ Classify each of these costs according to its category in the value chain and further break down production costs into three$$ subcategories: Direct Materials$($DM$),$ Direct Labor$($DL$),$ or Manufacturing Overhead$($MOH$).$ Calculate the total costs for each value chain category.Plant janitors' wages. $................................................$

$$1,000$

Delivery truck drivers' wages. $.........................................$

$$235$

Payment for new recipe. $..............................................$

$$1,300$

Depreciation on delivery trucks. $.......................................$

$$300$

Plant utilities. $.......................................................$

$$350$

Lime flavoring. $......................................................$

$$1,100$

Rearrangment of plant layout. $.........................................$

$$1,000$

Bottles. $............................................................$

$$1,200$

Salt. $...............................................................$

$$35$

Sales commissions. $.................................................$

$$400$

Production costs of "cents$-$off" store coupons for customers. $.............$

$$630$

Lemon syrup. $.......................................................$

$$19,000$

Replacement of products with expired dates upon customer complaint. $....$

$$40$

Depreciation on plant and equipment. $..................................$

$$2,800$

Wages of workers who mix syrup. $.....................................$

$$8,500$

Customer hotline. $...................................................$

$$160$

Freight$-$in on materials. $...............................................$

$$2,000$