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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:
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:
-Refer to the figure.What is the cost assigned to the training employees' activity?
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
Health Insurance Costs
The expenses associated with medical policies that cover the cost of medical services for the insured.
Premium Per Person
The amount of money charged per individual for insurance coverage.
Volume Discounts
Price reductions offered to buyers purchasing in large quantities, used as an incentive to increase sales volume.
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