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Piper Company has two cost center service departments (Cafeteria and Human Resources) and two revenue/production...

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Question

Accounting

Piper Company has two cost center service departments (Cafeteria and Human Resources) and two revenue/production departments (Machining and Assembly). The number of employees in each department follows.

DEPARTMENT NAME

# OF EMPLOYEES

CAFETERIA

40

HUMAN RESOURCES

60

MACHINING

200

ASSEMBLY

300

Piper Company 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?

Group of answer choices

$1,200,000.

$720,000.

$900,000.

$600,000

Answer & Explanation Solved by verified expert
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