Question - Peterson Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.
Cafeteria 35
Human Resources 20
Machining 600
Assembly 400
Peterson uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,600,000, how much of the department's cost would be allocated to Machining?