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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000are allocated on the basis of budgeted warehouse-hours.
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000are 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 $122,500 and $147,000, 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 Warehouse Department Support Departments Data Center Department $100,000 560 NA Production Departments Music $122,500 $147,000 1,080 880 Books 1,550 1,070 $390,000 NA 210 Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations.) OA. $160,152 B. $189,498 O C. $229,848 D. $147,000
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