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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000are allocated on the basis of budgeted
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000are 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 $112,500 and $135,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Budgeted costs Budgeted warehouse-hours Number of computer hours Production Departments Warehouse Data Center Music Books Department Department $350,000 $100,000 $112,500 $135,000 NA 280 530 NA 1,010 850 1,560 1,080 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) OA. $100,000 B. $55,959 OC. $38,462 OD. $44,041
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