Question

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 A Salaries of scientists who developed new model Print Done

Answer 1

Answer-

Requirements 1, 2 and 3
Cost Classification	Amount in Millions
	R & D	Design	Direct Material	Direct labor	Manufacturing overhead	Marketing	Distribution	Customer service
Delivery expense							$4
Salaries of salespeople						$5
Chip Set			$61
Exterior case for phone			$4
Assembly—line workers' wages				$10
Technical support hotline								$7
Depreciation on plant and equipment					$65
Rearrange production process		$4
1-800 (toll-free) line for customer orders						$4
Scientists' salaries	$12
Total cost	$12	$4	$65	$10	$65	$9	$4	$7

4-Total Product Cost= Direct materials+ Direct labor+Manufacturing overhead

=$65+$10+$65

=$140

5-Prime Cost= Direct materials+ Direct labor

=$65+$10

=$75

6-Conversion Cost= Direct labor+Manufacturing overhead

=$10+ $65

=$75

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