Challenger Ltd$.$ has two service departments, Warehouse and Data Center. Warehouse Department

costs of $$310,000$ 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 $$102,500$ and $$123,000,$ respectively. Data on budgeted warehousehours and number of computer log$-$on hours are as follows:

Production

Support Departments Departments

Warehouse

Department

Data Center

Department Music Books

Budgeted costs $$310,000$ $$100,000$ $$102,500$ $$123,000$

Budgeted warehouse$-$hours NA $52010801590$

Number of computer hours $270$ NA $9001020$

Using the step$-$down method, what amount of Warehouse Department cost will be allocated to

Department Music if the service department with the highest percentage of interdepartmental support

service is allocated first? $($Do not round any intermediary calculations.$)$

A$.$ $$33,856$

B$.$ $$125,393$

C$.$ $$104,953$

D$.$ $$34,702$

Explanation: Warehouse provid