Use the Following Information to Answer the Following Questions

question 24

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 Machining?

• A) $0.
• B) $428,572.
• C) $444,444.
• D) $480,000.
• E) None of the answers is correct.

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Definitions:

Office Furniture

Items of movable equipment that are used in an office setting for functional or decorative purposes.

Documentary Evidence

Written or printed records that are used to support the transactions recorded in the accounting system.

Trial Balance

An accounting report that lists all the balances of each ledger account at a point in time to ensure that debits equal credits as part of the double-entry bookkeeping system.

Adjustments

Modifications made to financial statements to correct errors, account for omitted transactions, or bring the statements in line with Generally Accepted Accounting Principles (GAAP).