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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

Support Departments

Production Departments

Warehouse Department

Data Center Department

Music

Books

Budgeted costs

$350,000

$150,000

$125,000

$150,000

Budgeted warehouse-hours

NA

500

1,000

1,500

Number of computer hours

200

NA

800

1,000

Using the direct method, what amount of Data Center Department costs will be allocated to Department Music?

$60,000

$66,667

$83,333

$150,000

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