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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
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
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