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.

Question

Quizplus · Accepted Answer

Taylor oversees processes that are considered part of Machining and Production, Machine Setup, and Inspection, which are all separate cost pools. Therefore, Taylor's salary should be allocated among the three cost pools based on her time spent on each activity.