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7) Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $380,000 are allocated on the basis of
7) Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $380,000 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 $120,000 and $144,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Support Departments Departments Warehouse Data Center Music Books Department Department Budgeted costs $380,000 $100,000 $120,000 $144,000 Budgeted warehouse-hours NA 570 1090 1570 Number of computer hours 290 NA 1000 Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated 820 first? (Round up) A) $34,337 B) $13,744 C) $100,000 D) $O
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