P2-35A_Shzam_Soda

P2-35A_Shzam_Soda - P2-35A ShaZam Cola Value Chain Cost...

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Unformatted text preview: P2-35A ShaZam Cola Value Chain Cost Classification (In thousands) Cost Plant utilities Depreciation on plant and equipment Payment for new recipe Salt* Replace products with expired dates Rearranging plant layout Lemon syrup Lime flavoring Production costs of “cents-off” store coupons for customers Delivery-truck drivers’ wages Bottles Sales commissions Plant janitors’ wages Wages of workers who mix syrup Customer hotline Depreciation on delivery trucks Freight-in Total costs R&D Design Direct Materials Production Direct Manufacturing Labor Overhead Marketing Distributio n Customer Service $ 750 3,000 $1,000 25 $ 50 $1,100 $18,000 1,000 $ 600 $250 1,300 400 1,000 $8,000 200 150 $1,000 $1,100 1,500 $21,800* $8,000 $4,775 $1,000 $400 $250 *Salt’s low value makes it likely treated as indirect materials. However, some students may classify salt as direct materials. (continued) P 2-35A Req. 3 Total inventoriable product costs: Direct materials...................................….. Direct labor..........................................….. Manufacturing overhead.....................….. Total inventoriable product costs.......…. $21,800 8,000 4,775 $34,575 ...
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P2-35A_Shzam_Soda - P2-35A ShaZam Cola Value Chain Cost...

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