Suppose the smartphone manufacturer Gamma Electronics provides the following information for its costs last month (in millions): B 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 an input field is not used in the table, leave the input field empty, do not enter a zero.) Gamma Electronics Value Chain Cost Classification Production Direct Direct Manufacturing Design Materials Labor Overhead Customer Service Cost Rand D Marketing Distribution Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly-line workers' wages Technical support hotline Depreciation on plant and equipment Rearrange production process 1-800 (toll-free) line for customer orders Scientists' salarios Total costs Production Suppose the smartphone manufacturer Garrima Electronics provides the following information for its costs last month (in millions): Click the icon to view the costs.) Read the requirements. TO process TIL 1-800 (toll-free) line for customer orders Scientists' salaries Total costs Direct Production Direct Manufacturing Labor Overhead Customer Service Cost Rand Design Materials Marketing Distribution Requirement 4. How much are the total product costs? First determine the formula, then calculate the total product costs. (Enter amounts in millions.) Total product cost + Requirement 5. How much are the total prime costs? First determine the formula, then calculate the total prime costs. (Enter amounts in millions.) Total prime cost Requirement 6. How much are the total conversion costs? First determine the formula, then calculate the total conversion costs. (Enter amounts in millions.) = Total conversion cost Data Table 5 3 62 7 Delivery expense to customers via UPS Salaries of salespeople.... Chipset (the set of chips used on a phone's motherboard) Exterior case for phone.... 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.. $ EA EA EA EA EA EA EA EA EA 12 6 70 4 4 14 Print Done 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
