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Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.
Cafeteria 30
Human Resources 40
Machining 130
Assembly 170
Marshall Welding uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,380,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Machining? (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)
Multiple Choice a. $0. b. $598,000. c. $543,636. d. None e. $527,648.
Sagot :
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