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Homework answers / question archive / Seymore Company has two service departments Cafeteria and Human Resources and two production departments Machining and Assembly

Seymore Company has two service departments Cafeteria and Human Resources and two production departments Machining and Assembly

Business

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

 

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.

a. $0.

b. $524,334.

c. $542,414.

d. $605,000.

e. None of these.

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