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Question content area top Part 1 ShaZam 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. ShaZam Cola incurs the following costs (in thousands): View the costs.LOADING... Read the requirements. LOADING... Question content area bottom Part 1 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). Calculate the total costs for each value chain category. Plant janitors' wages. $1,000 Delivery truck drivers' wages. $235 Payment for new recipe. $1,300 Depreciation on delivery trucks. $300 Plant utilities. $350 Lime flavoring. $1,100 Rearrangment of plant layout.. $1,000 Bottles. $1,200 Salt. $35 Sales commissions. . . $400 Production costs of "cents - off" store coupons for customers. $630 Lemon syrup. $19,000 Replacement of products with expired dates upon customer complaint. . . . . $40 Depreciation on plant and equipment. $2,800 Wages of workers who mix syrup.. $8,500 Customer hotline.. $160 Freight in on materials. $2,000

Question content area top Part 1 ShaZam 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. ShaZam Cola incurs the following costs (in thousands): View the costs.LOADING... Read the requirements. LOADING... Question content area bottom Part 1 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). Calculate the total costs for each value chain category. Plant janitors' wages. $1,000 Delivery truck drivers' wages. $235 Payment for new recipe. $1,300 Depreciation on delivery trucks. $300 Plant utilities. $350 Lime flavoring. $1,100 Rearrangment of plant layout.. $1,000 Bottles. $1,200 Salt. $35 Sales commissions. . . $400 Production costs of "cents - off" store coupons for customers. $630 Lemon syrup. $19,000 Replacement of products with expired dates upon customer complaint. . . . . $40 Depreciation on plant and equipment. $2,800 Wages of workers who mix syrup.. $8,500 Customer hotline.. $160 Freight in on materials. $2,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question content area top Part 1 ShaZam 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. ShaZam Cola incurs the following costs (in thousands): View the costs.LOADING... Read the requirements. LOADING... Question content area bottom Part 1 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). Calculate the total costs for each value chain category. Plant janitors' wages. $1,000 Delivery truck drivers' wages. $235 Payment for new recipe. $1,300 Depreciation on delivery trucks. $300 Plant utilities. $350 Lime flavoring. $1,100 Rearrangment of plant layout.. $1,000 Bottles. $1,200 Salt. $35 Sales commissions. . . $400 Production costs of "cents - off" store coupons for customers. $630 Lemon syrup. $19,000 Replacement of products with expired dates upon customer complaint. . . . . $40 Depreciation on plant and equipment. $2,800 Wages of workers who mix syrup.. $8,500 Customer hotline.. $160 Freight in on materials. $2,000
Transcribed Image Text:Question content area top Part 1 ShaZam 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. ShaZam Cola incurs the following costs (in thousands): View the costs.LOADING... Read the requirements. LOADING... Question content area bottom Part 1 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). Calculate the total costs for each value chain category. Plant janitors' wages. $1,000 Delivery truck drivers' wages. $235 Payment for new recipe. $1,300 Depreciation on delivery trucks. $300 Plant utilities. $350 Lime flavoring. $1,100 Rearrangment of plant layout.. $1,000 Bottles. $1,200 Salt. $35 Sales commissions. . . $400 Production costs of "cents - off" store coupons for customers. $630 Lemon syrup. $19,000 Replacement of products with expired dates upon customer complaint. . . . . $40 Depreciation on plant and equipment. $2,800 Wages of workers who mix syrup.. $8,500 Customer hotline.. $160 Freight in on materials. $2,000
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