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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $310,000 are allocated on the basis of
Goldfarb's Book and Music Store 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 warehouse - hours and number of computer log - on hours are as follows: Support Departments Production Departments Budgeted costs Warehouse Department $310,000 Data Center Music Books Department Budgeted warehouse - hours NA Number of computer hours 270 $100,000 520 NA $102,500 $123,000 1,080 1,590 900 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.) OA. $125,393 B. $33,856 OC. $34,702 OD. $104,953
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