Quickdraw Corporation Has Two Service Departments (Accounting and Human Resources)

Multiple Choice

Quickdraw Corporation has two service departments (Accounting and Human Resources) and two production departments (Machining and Assembly) . The number of employees in each department follows. $\begin{array} { l r } \text { Accounting } & 10 \\\text { Human Resources } & 20 \\\text { Machining } & 150 \\\text { Assembly } & 100\end{array}$ Quickdraw uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources and Accounting cost amounts to $2,400,000 and $1,300,000 respectively. Management believes that the Human Resources department provides more service to the firm than Accounting. How much Human Resources cost would be allocated to Machining?

A) $0.
B) $1,285,714.
C) $1,333,333.
D) $1,384,615.
E) $1,440,000.