Sauders uses the step-down method of cost allocation and

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Sauders 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 20

Human Resources 30

Machining 100

Assembly 150

Sauders uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Machining?

Reference no: EM13484413

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