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What is the cost assigned to each activity (a. BOMs, b. Study of Manufacturing Capabilities, c. Improvement in Manufacturing processes, d. Employee training and development,
What is the cost assigned to each activity (a. BOMs, b. Study of Manufacturing Capabilities, c. Improvement in Manufacturing processes, d. Employee training and development, f.Tool Design)? Please show solutions.
Zebra 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: Salaries $150,000 Equipment 80,000 Supplies 20,000 Total $250,000 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 sixty-five percent is used for designing tools. The salaries are for two engineers. One is paid $100,000, while the other earns $50,000. The $100,000 engineer spends 40% of his time training employees in new processes and 60% of his time on ovi processes. The remaining engineer spends equa 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%Step by Step Solution
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