Goldfarb's Book and Music Store has two service departments, ...

[ENagel]

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

 Production

Support Departments

Departments

​	Warehouse Department	Data Center Department	Music	Books
Budgeted costs	$350,000	$100,000	$112,500	$135,000
Budgeted warehouse-hours	NA	560	1100	1580
Number of computer hours	270	NA	870	1070

Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations.)
◦ $143,657
◦ $206,343
◦ $135,000
◦ $170,679

[ebonylittles]

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