Multiple Choice
Use this information to answer the following Questions
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.
-Rave Reviews 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?
A) $600,000.
B) $720,000.
C) $900,000.
D) $1,200,000.
E) None of the answers is correct.
Correct Answer:

Verified
Correct Answer:
Verified
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