reveal the following expenditures for manufacturing engineering: Salaries $ 75,0

Question

reveal the following expenditures for manufacturing engineering: Salaries $ 75,000 Equipment 40,000 Supplies 10,000 Total $125,000 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: Creating BOMs 25% Studying capabilities 10% Improving processes 20% Training employees 25% Designing tooling 20% What is the cost assigned to the designing tooling activity?

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Cost Assigned to Designing activity is $33000.

Improving Designing Training BOM CAPAbilities Working for Designing Salaries 50000 30000 20000 Zero for Designing Salaries 25000 5000 5000 5000 5000 5000 Equal for all Five activities Equipment 40000 14000 26000 65% for Designing Supplies 10000 2000 2000 2500 2500 1000 20% of Designing 125000 51000 33000 27500 7500 6000

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