X-TREME Corporation has the following activities: creating bills of materials (BOM), studying manufacturing capabilities, improving manufacturing processes,...

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Accounting

X-TREME Corporation has the following activities: creating billsof materials (BOM), studying manufacturing capabilities, improvingmanufacturing processes, training employees, and designing tooling.The general ledger accounts reveal the following expenditures formanufacturing engineering:
Salaries $ 75,000
Equipment 40,000
Supplies 10,000
Total $125,000

The equipment is used for two activities: improving processes anddesigning tooling. Thirty-five percent of the equipment's time isused for improving processes and 65 percent is used for designingtools. The salaries are for two engineers. One is paid $50,000,while the other earns $25,000. The $50,000 engineer spends 40percent of his time training employees in new processes and 60percent of his time on improving processes. The remaining engineerspends equal time on all activities. Supplies are consumed in thefollowing proportions:
Creating BOMs 25%
Studying capabilities 10%
Improving processes 20%
Training employees 25%
Designing tooling 20%

What is the cost assigned to the improving processes activity?
a.$51,000
b.$25,000
c.$250,000
d.$43,750

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Answer A51000 cost assigned to the improving processes activity 51000 Working notes for the above answer is as under 1 It was given in the question that The equipment is used for See Answer

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Creating BOMs	25%
Studying capabilities	10%
Improving processes	20%
Training employees	25%
Designing tooling	20%