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:

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by supply and demand for labor.

Firms Lay Off

A situation in which companies reduce their workforce due to financial constraints, lack of work, or restructuring processes.

Poverty Rate

The proportion of a population living below the national poverty line, indicating the percentage of people experiencing economic hardship.

Official Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, used to identify individuals and households in need of assistance.