1. Peterson 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 200

   Assembly 300

   Peterson 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?

   		$600,000
   		$720,000
   		$900,000
   		$1,200,000
   		Some other amount