Question

Best Value Cola produces a lemon-lime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The company enhances the combined syrup with caffeine. Finally, the company dilutes the mixture with carbonated water. Best Value Cola Incurs the following costs in thousands): (Click the icon to view the costs) Read the requirements Requirements 1, 2 and 3. Classify each of these costs according to its category in the value chain and further break down production costs into three subcategories: Direct Materials (DM) Direct Labor (DL), or Manufacturing Overhead (MOH) Compute the total costs for each value chain category. (If an input field is not used in the table, leave the input field empty, do not enter a zero) Best Value Cola Value Chain Cost Classification Production Direct Direct Design Materials Labor Overhead Manufacturing Customer R&D Marketing Distribution Service 255 Cost Truck drivers' wages Lemon syrup Depreciation on trucks Lime flavoring Payment for new recipe Customer hotline Sales commissions Production costs of "cents-off coupons Rearrange plant layout Freiht.in nn materiale 2 Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Cost	R&D	Design	Production	Marketing	Distribution	CustomerService
Direct Materials	Direct Labor	Manufacturing Overhead
Truck Driver's Wages							255
Lemon Syrup			13,000
Depriciation on truck							350
Lime Flavouring			1,020
Payment for new recipe	1,220
Customer Hotline								160
Sales Commission						250
Production Cost of "cents-off" Coupons								530
Rearrange Plant Layout		1,200
Fright in-on Materials			1,300
Depriciation on Plant & Equipment					2,600
Bottles			1,210
Salt			55
Plant Utilities					700
Wages of workers who mix syrup				8,100
Plant janitors wages				900
Replace products with expired dates							25
Total Costs	1,220	1,200	16,585	9,000	3,300	250	630	690

Total Product Cost = Total Direct Material + Total Direct Labor + Total Manufacturing Overhead

Therefore Total Product Cost = 16,585 + 9,000 + 3,300

Total Product Coat = $28,885