The plant manager has come to you, as the new management accountant, for assistance.The plant manufactures sailboards, operating two shifts per day.During March through July, a third shift is added.The company has to train new machine operators each summer as the demands for its products is very seasonal.Training always occurs on the day shift, and the plant allocates the costs of training (e.
g., extra supervision required), based on machine hours.This year, the three shift managers cannot agree on who should be charged for the training.The day shift manager is angry because she has discovered that machine hours are highest on the day shift.The other two managers argue that the hours are higher due to the training, so the day shift should be charged for those costs.Required:
Provide a recommendation to the plant manager? Include in your recommendation two options as an allocation base for training costs.

Question

Quizplus · Accepted Answer

The Answer of The plant manager has come to you, as the new management accountant, for assistance.The plant manufactures sailboards, operating two shifts per day.During March through July, a third shift is added.The company has to train new machine operators each summer as the demands for its products is very seasonal.Training always occurs on the day shift, and the plant allocates the costs of training (e.
g., extra supervision required), based on machine hours.This year, the three shift managers cannot agree on who should be charged for the training.The day shift manager is angry because she has discovered that machine hours are highest on the day shift.The other two managers argue that the hours are higher due to the training, so the day shift should be charged for those costs.Required:
Provide a recommendation to the plant manager? Include in your recommendation two options as an allocation base for training costs.

The Plant Manager Has Come to You, as the New