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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000are allocated on the basis of budgeted
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of $170,000 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: Support Departments Production Departments Warehouse Data Center Music Books Department Budgeted costs $360,000 Budgeted warehouse - hours NA Number of computer hours 290 Department $170,000 520 NA $132,500 $159,000 1,020 1,520 840 1,050 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) A. $75,556 B. $170,000 C. $94,444 D. $65,505
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