Question

Portland, Inc. has formed four activity cost pools: Product Design, Machining and Production, Machine Setup, and Inspection. Gina Taylor, Production Manager at Portland, oversees processes that are considered part of Machining and Production, Machine Setup, and Inspection. Taylor's salary should be
a. assigned to the activity she spends the most time on.

b. considered as a separate activity.

c. expensed in the period incurred.

d. allocated among Machining and Production, Machine Setup, and Inspection.

Answer 1

Taylor's salary should be allocated among Machining and Production, Machine Setup, and Inspection.

Option: D

Explanation:

Gina Taylor is a Production Manager who look out at process take place in machining and production, machine setup and inspection department. As Taylor being a production manger facilitate safe and effective operation of production processes. Job duties typically involve of such manager: arranging and coordinating production plans, forecasting, discussing and collaborating with customers and managers on budgets and timescales. Strong leadership and command is important in such works to run the firm in well organized manner.