Figure 11-3
Moss Ltd. 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:
$\begin{array}{ll}
\text { Salaries } & £ 75,000 \
\text { Equipment } & 40,000 \
\text { Supplies } & 10,000 \
\quad \text { Total } &£ 125,000\
\end{array}$
-Refer to Figure 11-3. What is the cost assigned to the creating BOMs activity?
A)£31,250
B)£7,500
C)£43,750
D)£125,000

Question

Figure 11-3
Moss Ltd. 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:
$\begin{array}{ll}
\text { Salaries } & £ 75,000 \
\text { Equipment } & 40,000 \
\text { Supplies } & 10,000  \
\quad \text { Total } &£ 125,000\
\end{array}$
-Refer to Figure 11-3. What is the cost assigned to the creating BOMs activity?
A)£31,250
B)£7,500
C)£43,750
D)£125,000

Quizplus · Accepted Answer

The cost assigned to the creating BOMs activity cannot be precisely determined from the information provided. The total cost of £125,000 includes salaries, equipment, and supplies for all activities listed, not just creating BOMs. Without knowing how the total costs are distributed among the different activities, it's impossible to accurately assign a specific cost to creating BOMs. Therefore, any specific numerical answer would be speculative.

Figure 11-3 Moss Ltd -Refer to Figure 11-3

Figure 11-3
Moss Ltd -Refer to Figure 11-3