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Author Question: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse ... (Read 271 times)

ENagel

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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 DepartmentsDepartments
Warehouse DepartmentData Center DepartmentMusicBooks
Budgeted costs$350,000$100,000$112,500$135,000
Budgeted warehouse-hoursNA56011001580
Number of computer hours270NA8701070
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


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Marked as best answer by ENagel on Mar 6, 2021

ebonylittles

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