Use the Following Information to Answer the Following Questions

question 51

Multiple Choice

Use the following information to answer the following Questions
Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly) . The number of employees in each department follows.

-Marshall Welding 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 Assembly?

• A) $0.
• B) $480,572.
• C) $444,444.
• D) $666,666.
• E) None of the answers is correct.

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Definitions:

Granted

Acknowledgment that something is provided or allowed, often officially or formally.

Compulsory Licence

A license granted to a third-party by the government to use a patented invention without the consent of the patent holder.

Royalty Fee

A payment made to an owner for the use of their property, typically intellectual property or natural resources.

Distinctive Guise

A unique appearance of a product or packaging that signifies exclusive source, identity or origin, typically relevant in trademark law.