Moss Corporation Has the Following Activities: Creating Bills of Materials

question 140

Multiple Choice

Moss Corporation 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:
$$\begin{array} { l r } \text { Salaries } & \$ 5,000 \\\text { Equpment } & 40,000 \\\text { Supplies } & 10,000 \\\text { Total } & \$ 125000\end{array}$$ The equipment is used for two activities: improving processes and designing tooling.Thirty-five percent of the equipment's time is used for improving processes and 65 percent is used for designing tools.The salaries are for two engineers.One is paid $50,000,while the other earns $25,000.The $50,000 engineer spends 40 percent of his time training employees in new processes and 60 percent of his time on improving processes.The remaining engineer spends equal time on all activities.Supplies are consumed in the following proportions:
$\begin{array}{llr} \text { Creating BOMs} &25\%\\ \text { Studying capabilities} &10\%\\ \text { Improving processes } &20\%\\ \text { Training employees } &25\%\\ \text { Designing tooling } &20\%\end{array}$

-Refer to the figure.What is the cost assigned to the creating BOMs activity?

• A)$7,500
• B)$31,250
• C)$43,750
• D)$125,000

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Definitions:

Ganglion Cell

Ganglion cells are neurons located in the retina that transmit visual information from photoreceptors to the brain via the optic nerve.

Bipolar Cell

Bipolar cells are a type of neuron found in the retina, acting as an intermediary between photoreceptors that detect light and ganglion cells that transmit visual information to the brain.

Horizontal Cell

A neuron in the eye that integrates and regulates input from multiple photoreceptor cells.

Rod

Photoreceptor specialized for functioning at low light levels.