Rave Reviews 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 500 Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,820, 000, how much of the department's cost would be allocated to Machining? (Do not round your intermediate calculations.) Multiple Choice $364, 000. $520,000. $910, 000. $728, 000. None of the answers is correct.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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Rave Reviews 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 500 Rave
Reviews uses the direct method of cost allocation and allocates cost on the basis of
employees. If Human Resources cost amounts to $1,820, 000, how much of the department's
cost would be allocated to Machining? (Do not round your intermediate calculations.) Multiple
Choice $364, 000. $520,000. $910, 000. $728, 000. None of the answers is correct.
Transcribed Image Text:Rave Reviews 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 500 Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,820, 000, how much of the department's cost would be allocated to Machining? (Do not round your intermediate calculations.) Multiple Choice $364, 000. $520,000. $910, 000. $728, 000. None of the answers is correct.
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