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3) 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
3) 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: Support Departments Warehouse Data Center Department Department Production Departments Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $370,000 NA 210 $180,000 500 N A $137,50 0 1050 900 $165,00 0 1520 1040 T Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) A) $83,505 B) $75,349 C) $180,000 D) $96,495
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