Moss Corporation Has the Following Activities: Creating Bills of Materials

question 9

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 improving processes activity?

• A)$25,000
• B)$43,750
• C)$51,000
• D)$250,000

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Definitions:

Degrees of Freedom

The number of independent values or variables that are free to vary in a statistical analysis, critical for determining the significance of test results.

One-sample T Statistic

A statistical measure used to test whether the mean of a single sample differs significantly from a known or hypothesized population mean.

Normal Quantile Plot

A graphical method for assessing whether a set of data follows a normal distribution by plotting observed data against theoretically expected normal values.

T Procedure

A statistical method used to estimate the mean of a population, particularly when the sample size is small and the population standard deviation is unknown.