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
