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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 $190,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $125,000 and $150,000, 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 Production Departments Data Center Department Music $190,000 540 NA Books $125,000 $150,000 1,020 1,560 880 1,020 $310,000 NA 230 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) 0000 A. $78,498 B. $88,000 OC. $102,000 OD. $190,000
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