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Scenario Pederson Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each
Scenario 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: 200 Assembly: 300 Pederson uses the direct method of cost allocation and allocate costs based on the number of employees. Question If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Machining? $600,000 O $720,000 $900,000 O $1,200,000 None of the other answers are correct
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