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Pattinson Limited Has Two Service Departments (Human Resources and Public

Question 13

Multiple Choice

Pattinson Limited has two service departments (Human Resources and Public Relations) and two production departments (Assembly and Finishing) . The number of employees in each department follows.  Human Resources 20 Public Relations 30 Assembly 120 Finishing 200\begin{array} { l l } \text { Human Resources } & 20 \\\text { Public Relations } & 30 \\\text { Assembly } & 120 \\\text { Finishing } &200\end{array} Pattinson uses the direct method of cost allocation and allocates cost on the basis of employees. If Public Relations cost amounts to $2,000,000, how much of the department's cost would be allocated to Assembly?


A) $750,000.
B) $1,081,081.
C) $1,200,000.
D) $1,250,000.
E) $2,000,000.

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