Seymore Company Has Two Service Departments (Cafeteria and Human Resources)

question 71

Multiple Choice

Seymore Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly) . The number of employees in each department follows. $$\begin{array} { l r } \text { Cafeteria } & 20 \\\text { Human Resources } & 30 \\\text { Machining } & 100 \\\text { Assembly } & 150\end{array}$$ Seymore 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 other answers are correct.

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Definitions:

Conflict Resolution

The process of resolving disagreements or disputes among individuals or groups in a peaceful and mutually agreeable manner.

Formal Leader

An individual who holds an official position of authority and is recognized within an organization as having the right to guide and direct others.

Leadership Roles

The specific responsibilities and expectations associated with individuals in positions of influence within an organization.

Collective Efficacy

The shared belief in the capability of a group to achieve its goals and successfully execute tasks together.