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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
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 $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $132,500 and $159,000, respectively. Data on budgeted warehouse - hours and number of computer log-on hours are as follows: Production Departments Music Books Support Departments Warehouse Data Center Department Department $380,000 $150,000 NA 570 270 NA Budgeted costs Budgeted warehouse - hours Number of computer hours $132,500 1,070 900 $159,000 1,540 1,020 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. $44,583 B. $50,472 C. $127,862 OD. $155,785
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