Use this information to answer the following Questions
Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.

-Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Machining?
A) $600,000.
B) $720,000.
C) $900,000.
D) $1,200,000.
E) None of the answers is correct.

Question

Use this information to answer the following Questions
Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.

-Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Machining?
A) $600,000. 
B) $720,000. 
C) $900,000. 
D) $1,200,000. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Use this information to answer the following Questions
Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.

-Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Machining?
A) $600,000. 
B) $720,000. 
C) $900,000. 
D) $1,200,000. 
E) None of the answers is correct.

Use This Information to Answer the Following Questions