Use the following information to answer the following Questions
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.
-Marshall Welding uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Machining?
A) $0.
B) $428,572.
C) $444,444.
D) $480,000.
E) None of the answers is correct.
Correct Answer:
Verified
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