Piper Company has two cost center service departments (Cafeteria and Human Resources) and two revenue/production...
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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 Assembly?
Group of answer choices
$900,000.
$1,080,000.
$720,000.
$1,200,000
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