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Pederson Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.

Pederson 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 40
Human Resources 60
Machining 400
Assembly 600

Pederson uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,950,000, how much of the department's cost would be allocated to Assembly? (Do not round your intermediate calculations.)

$487,500.

$780,000.

$1,170,000.

$1,300,000.

None of these.

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