Seymore Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining...
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Accounting
Seymore 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 | 110 |
Assembly | 150 |
1.
Seymore uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,430,000, and is allocated first. How much Human Resources cost would be allocated to Machining? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
$0.
$524,334.
$542,414.
$605,000.
None of these.
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