Question: determine the total cost of the Program New Games Activity. In doing so, for each cost, identify the resource driver(s) and the amount that should be allocated to this activity. Note, if you elect to fully-load your cost, indicate the new total for the fully-loaded cost and where the added cost came from. show all of your work for partial credit.
SESSION 8&9- ABM & VALUE CHAIN SECTION 9.45AM I1.UUM USE THE FOLLOWING INFORMATION FOR QUESTION 1 Jacob and Jillien founded J] Games after graduating from Babson. JJ Games is a producer of the J]-Babo - an innovative video game system that makes the PlayStation 4, the XBox One and the Nintendo Switch obsolete. Since its release, it has been a huge hit and all of it competitors have ceased operations due to their inability to compete. JJ's most talented employees work on the R&D Team charged with two responsibilities: - a small group of engineers who are 1. Develop exciting games for the JJ - Babo 2. Develop their next generation gaming console, the JJ- Benny [which was named in honor of their MAC professor - note, I realize this is shameless self-promotion] To carry out these responsibilities, the R&D Team perform the following four Activities: 1. Design / Prototype Next Generation (Next-Gen) Console (JJ-Benny) 2. Create bug fixes/updates for existing gaming console (200 updates per year) 3. Program new games (15 new games planned per year) 4. Interact w/ users on gaming discussion boards The team has an annual budget of $1.5M. The director earns a salary of $100,000 plus fringe benefits of 25% of her salary. She works 2,000 hours per year and spends approximately 1,000 hours managing issues related to the prototype of the next-gen system, 400 hours overseeing bug fixes and 600 hours managing the programming new games activity. There are four engineers who each earn $200,000 a year plus 25% in fringe benefits. One of the engineers is completely dedicated to the prototype of the next-gen console. The remaining three divide their time among the fixing bugs in the existing console (40 % ) , programming new games (50% ) and interacting with users on discussion boards (10 % ). The R&D team works in a dedicated 1,500 sq. ft. facility that rents for $200,000 per year. The facility costs include all utility costs as well as the costs of furniture and fixtures plus personal computers. The director's office is 150 sq. ft. The server room occupies 450 sq. ft. The remainder of the space is used by the four engineers (who each occupy an equal amount of space). The company also leases storage servers for $50,000 annually. The 100 terabyte servers are partitioned for 70 of the terabytes to be used to store new games, 20 for bug fixes for the JJ-Benny console and 10 for fan discussion boards. The R&D team spends $125,000 annually on components for the Next-Gen console prototype. Some issues have arisen with the R&D team's performance, so Jacob and Jillien are interested in learning how the R&D Team uses its resources. ACCOUNTING (MACY JUNE SESSION 8&9- ABM & VALUE CHAIN SECTION 9.45AM I1.UUM USE THE FOLLOWING INFORMATION FOR QUESTION 1 Jacob and Jillien founded J] Games after graduating from Babson. JJ Games is a producer of the J]-Babo - an innovative video game system that makes the PlayStation 4, the XBox One and the Nintendo Switch obsolete. Since its release, it has been a huge hit and all of it competitors have ceased operations due to their inability to compete. JJ's most talented employees work on the R&D Team charged with two responsibilities: - a small group of engineers who are 1. Develop exciting games for the JJ - Babo 2. Develop their next generation gaming console, the JJ- Benny [which was named in honor of their MAC professor - note, I realize this is shameless self-promotion] To carry out these responsibilities, the R&D Team perform the following four Activities: 1. Design / Prototype Next Generation (Next-Gen) Console (JJ-Benny) 2. Create bug fixes/updates for existing gaming console (200 updates per year) 3. Program new games (15 new games planned per year) 4. Interact w/ users on gaming discussion boards The team has an annual budget of $1.5M. The director earns a salary of $100,000 plus fringe benefits of 25% of her salary. She works 2,000 hours per year and spends approximately 1,000 hours managing issues related to the prototype of the next-gen system, 400 hours overseeing bug fixes and 600 hours managing the programming new games activity. There are four engineers who each earn $200,000 a year plus 25% in fringe benefits. One of the engineers is completely dedicated to the prototype of the next-gen console. The remaining three divide their time among the fixing bugs in the existing console (40 % ) , programming new games (50% ) and interacting with users on discussion boards (10 % ). The R&D team works in a dedicated 1,500 sq. ft. facility that rents for $200,000 per year. The facility costs include all utility costs as well as the costs of furniture and fixtures plus personal computers. The director's office is 150 sq. ft. The server room occupies 450 sq. ft. The remainder of the space is used by the four engineers (who each occupy an equal amount of space). The company also leases storage servers for $50,000 annually. The 100 terabyte servers are partitioned for 70 of the terabytes to be used to store new games, 20 for bug fixes for the JJ-Benny console and 10 for fan discussion boards. The R&D team spends $125,000 annually on components for the Next-Gen console prototype. Some issues have arisen with the R&D team's performance, so Jacob and Jillien are interested in learning how the R&D Team uses its resources. ACCOUNTING (MACY JUNE
