Suppose the smartphone manufacturer Alpha Electronics provides the following information for its costs last month (in millions): Data Table Delivery expense to customers via UPS. Salaries of salespeople.. Chipset (the set of chips used in a phone). 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. 1. 2. 3. 4. 5. 6. Compute the total costs for each value chain category. How much are the total product costs? $4 How much are the total prime costs? $6 How much are the total conversion costs? $57 $4 $13 $3 $55 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.) $5 Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. $6 $14

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Suppose the smartphone manufacturer Alpha Electronics provides the
following information for its costs last month (in millions):
Data Table
Delivery expense to customers via UPS.
Salaries of salespeople..
Chipset (the set of chips used in a phone).
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.
1.
2.
3.
4.
5.
6.
Compute the total costs for each value chain category.
How much are the total product costs?
$4
How much are the total prime costs?
$6
How much are the total conversion costs?
$57
$4
$13
$3
$55
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.)
$5
Within the production category, break the costs down further into
three subcategories: Direct Materials, Direct Labor, and
Manufacturing Overhead.
$6
$14
Transcribed Image Text:Suppose the smartphone manufacturer Alpha Electronics provides the following information for its costs last month (in millions): Data Table Delivery expense to customers via UPS. Salaries of salespeople.. Chipset (the set of chips used in a phone). 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. 1. 2. 3. 4. 5. 6. Compute the total costs for each value chain category. How much are the total product costs? $4 How much are the total prime costs? $6 How much are the total conversion costs? $57 $4 $13 $3 $55 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.) $5 Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. $6 $14
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