Assigning Resource costs to Activities, Resource Drivers, Primary and Secondary Activities Bob Russo, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering Department. The department has the following activities: creating bills of materials (BOM), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tools. The general ledger accounts reveal the following expenditures for Manufacturing Engineering: Salaries $500,000 Equipment 100,000 Supplies 30,000 Total $630,000 The equipment is used for two activities: Improving processes and designing tools. The equipment's time is divided by two activities: 40 percent for improving processes and 60 percent for designing tools. The salaries are for nine engineers, one who earns $100,000 and! eight who earn $50,000 each. The $100,000 engineer spends 40 percent of her time training employees in new processes and 60 percent of her time on improving processes. One engineer spends 100 percent of her time on designing tools, and another engineer spends 100 percent of his time on improving processes. The remaining six engineers spend equal time on all activities. Supples are consumed in the following proportions Creating BOMB Studying capabilities Improving processes Training employees 1096 5 35 20 5 35 20 30 Creating BOMS 10% Studying capabilities Improving processes Training employees Designing tools After determining the costs of the engineering activities, Bob was then asked to describe how these costs would be assigned to jobs produced within the factory. (The company manufactures machine parts on a job-order basis.) Bob responded by Indicating that creating BOMs and designing tools were the only primary activitles. The remaining were secondary activities. After some analysis, Bob concluded that studying manufacturing capabilities was an activity that enabled the other four activities to be realized. He also noted that all of the employees being trained are manufacturing workers-employees who work directly on the products. The major manufacturing activities are cutting, driling, lathing, welding, and assembly. The costs of these activities are assigned to the various products using hours of usage (grinding hours, drilling hours, etc.). Furthermore, tools were designed to enable the production of specific jobs. Finally, the process Improvement activity focused only on the five major manufacturing activities Required: Using the resource drivers and direct tracing, calculate the costs of each manufacturing engineering activity, If required, round your answers to the nearest dollar. Activity Cost Creating BOM 63,000 Candhi Improvement activity focused only on the five major manufacturing activities. Required: Using the resource drivers and direct tracing, calculate the costs of each manufacturing engineering activity. If required, round your answers to the nearest dollar. Cost 63,000 Activity Creating BOMS Studying capabilities Improving processes 220,500 Training employees K. Designing tools Feedback Check My Work Resource drivers are factors that measure the contumption of resources by activities. Direct tracing is a cost that is exclusive to the activity. Give the resource drivers