Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Goldfarb's Book and Music Store has two service departments (Warehouse, and Data Center) and two operating departments (Music, and Books). - Warehouse Department costs of
Goldfarb's Book and Music Store has two service departments (Warehouse, and Data Center) and two operating departments (Music, and Books). - Warehouse Department costs of $ 490000 are allocated on the basis of budgeted warehouse-hours. - Data Center Department costs of $ 150000 are allocated based on the number of computer log-on hours. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Budgeted costs Budgeted warehouse-hours (by Warehouse Dept.) Budgeted computer log-on hours (by Data Center Dept.) Production Departments Warehouse Department Data Center Department Music Books $ 490000 $ 150000 $125000 $150000 500 1000 1500 200 800 1000 (For each item below write your answers inside the boxes.) a) Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? Ans = $ b) Using the step-down method, and allocating Data Center Department costs first, what amount of Data Center Department cost will be allocated to Department Music? Ans = $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started