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4) Gold's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $400,000 are allocated on the basis of
4) Gold's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $400,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $200,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $150,000 and $180,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Budgeted costs Budgeted warehouse-hours Number of computer hours Support Departments Warehouse Data Center Department Department $400,000 220 $200,000 520 Production Departments Music Books $180,00 0 1,580 1,100 $150,000 1,070 890 Using the step-down method, compute the amount of Data Center Department cost that will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)
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