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

question 8

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 Assembly?

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

---

Definitions:

American Corporations

Business entities incorporated in the United States, known for their influential role in the global economy and culture.

Feelings Of Security

Emotional states characterized by a sense of safety, stability, and confidence in facing life's challenges.

Self-Actualization

Self-actualization is a concept from humanistic psychology representing the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Logistical Function

The aspect of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information.