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

question 6

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.

---

Definitions:

Interest Building

The process of generating curiosity, engagement, and excitement in an audience or group of people toward a specific topic or activity.

Instruction Step

A specific phase or part of an instructional process designed to guide learners through learning activities or to achieve learning outcomes.

Tradespeople

Skilled workers specialized in particular trades or crafts, often involving manual labor and technical skills.

Trainee's Belief

The perceptions or convictions held by learners about their ability to successfully achieve learning outcomes.