In: Accounting
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