Author Question: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse ... (Read 123 times)

lunatika · **on:** Mar 6, 2021

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $370,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $137,500 and $165,000, 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	$370,000	$180,000	$137,500	$165,000
Budgeted warehouse-hours	NA	500	1050	1520
Number of computer hours	210	NA	900	1040

Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.)
◦ $180,000
◦ $83,505
◦ $96,495
◦ $75,349

Cheesycrackers · **Reply #1 on:** Mar 6, 2021

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