Cola produces a lemonlime soda The production process starts

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. 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.

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 a box is not used in the table, leave the box empty; do not enter a zero.)
Data Table Plant janitors\' wages Delivery truck drivers\' wages $750 $315 Plant utilities Lime flavoring Rearrangment of plant layout Bottles Salt Sales commissions Production costs of \"cents-off store coupons for customers . Lemon syrup Replace products with expired dates upon customer complaint$ Depreciation on plant and equipment .. . . . . . . . ._ . . . . . . . . . . . $ 3,500 Wages of workers who mix syrup ...____.......$8,200 .$350 $ 1,100 . .. . _. .. _ _ _. _ _ . _ _ . _. . . .__ _ _ . . 40 $ 275 $ 730 35 PrintDone

Solution

Requirement 1, 2 and 3

Requirement 4

Requirement 5

The managers of R & D and Design are likely to cut their costs. This can increase costs of later value-chain elements.

Option D: All of the above

Cutting R & D and Design costs will result in increase in production, marketing, and customer service costs.

Cost R & D Design Production
Direct Materials Direct Labor Manufacturing Overhead Marketing Distribution Customer Service
Plant janitor\'s wages 750
Delivery truck driver\'s wages 315
Payment for new recipe 1040
Depreciation on delivery trucks 125
Plant utilities 350
Lime flavoring 1100
Rearrangement of plant layout 1500
Bottles 1410
Salt 40
Sales commissions 275
Production costs of \"cents-off\" store coupons for customers 730
Lemon syrup 16000
Replace products with expired dates upon customer complaint 35
Depreciation on plant and equipment 3500
Wages of workers who mix syrup 8200
Customer hotline 170
Freight-in on materials 1300
Total costs 1040 1500 19850 8200 4600 1005 440 205
 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 th

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