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Moss Ltd. has the following activities: creating bills of materials (BOM), studying manufacturing capabilities,improving manufacturing processes,...

Moss Ltd. has the following activities: creating bills of materials (BOM), studying manufacturing capabilities,improving manufacturing processes, training employees, and designing tooling. The general ledger accounts reveal the following expenditures for manufacturing engineering:Salaries £75,000; Equipment £40,000; Supplies £20,000.The equipment is used for three activities: improving processes, training employees and designing tooling. 40% of the equipment's time is used for improving processes, 20% for training and 40% is used for designing tools. The Engineers who earn all salaries spend equal time on all activities. Supplies are consumed in the following proportions:Creating BOMs 10%; Studying capabilities 15%; Improving processes 20%; Training employees 30%; Designing tooling 25%The cost assigned to studying manufacturing capabilities is

Select one:

a. £17,000

b. £29,000

c. £36,000

d. £35,000

e. £18,000

Solutions

Expert Solution

Answer is (e) 18,000

ekkarill92 answered 10 months ago
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