Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the smartphone manufacturer Alpha Electronics provides the following information for its costs last month (in millions): (Click the icon to view the costs.) Read

image text in transcribedimage text in transcribedimage text in transcribed

Suppose the smartphone manufacturer Alpha Electronics provides the following information for its costs last month (in millions): (Click the icon to view the costs.) Read the requirements Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category. (Enter amounts in millions. If a box is not used in the table, leave the box empty; do not enter a zero.) Alpha Electronics Value Chain Cost Classification Production Direct | Direct || Manufacturing R and D | Design || Materials | Labor Overhead || Marketing Customer Distribution || Service Cost Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly-line workers' wages Delivery expense to customers via UPS .... Salaries of salespeople Chipset (the set of chips used on a phone's motherboard)......... $ Exterior case for phone 58 A A ....... Assembly-line workers' wages.............. Technical customer support hotline ........... ....... Depreciation on plant and equipment Rearrangement of production process to accommodate new robot. 1-800 (toll-free) line for customer orders ........ Salaries of scientists who developed new model. ........ .. $ 14 2 A 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? Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

1. Discuss the evolution of nursing.

Answered: 1 week ago

Question

Why We Form Relationships Managing Relationship Dynamics?

Answered: 1 week ago