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ALLOCATING SUPPORT DEPARTMENT Goldfarb's Boo Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours Data Center Department costs of $150,000 are
ALLOCATING SUPPORT DEPARTMENT Goldfarb's Boo Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: k and Music Store has two service departments, Warehouse and Data Center Production Departments Department Department Music Books 1,000 1,500 800 1,000 Support DepartmntsD Warchouse Budgeted costs $350,000 NA $150,000 $125,000 $150,000 udgeted warehouse- ours 500 Number of computer hours 200 NA Music department and Books department are producing music on CDs and book on CDs. Below is other information relating with production department Music department Unit production Other Direct cost/unit Marketing cost/unit 1000 $ 97 S 25 Books Department 1000 S 85 S 35 Required: 1. Using the step-down method calculate the allocation of support departments to production departments Calculate cost per unit for CD's music and CD's book 2
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