Piper Company has two cost center service departments (Cafeteria and Human Resources) and two revenue/production...
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Accounting
Piper Company has two cost center service departments (Cafeteria and Human Resources) and two revenue/production departments (Machining and Assembly). The number of employees in each department follows.
DEPARTMENT NAME
# OF EMPLOYEES
CAFETERIA
40
HUMAN RESOURCES
60
MACHINING
200
ASSEMBLY
300
Piper Company 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 Assembly?
Group of answer choices
$900,000.
$1,080,000.
$720,000.
$1,200,000
Answer & Explanation
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