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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000 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 $360,000 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 $137,500 and $165,000, 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 Department Budgeted costs $360,000 $190,000 $137,500 $165,000 Budgeted warehouse - hours NA 570 1.100 1.540 Number of computer hours 260 NA 900 1,030 Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations.) O A. $150,000 O B. $210,000 O C. $172,710 OD. $165,000
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