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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $300,000 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 $300,000 are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of $130,000 are allocated based on the number of computer log - on hours. The costs of operating departments Music and Books are $107,500 and $129,000, respectively. Data on budgeted warehouse - hours and number of computer log - on hours are as follows: Support Departments Production Departments Warehouse Data Center Department Books Department Music Budgeted costs $300,000 $130,000 $107,500 $129,000 Budgeted warehouse - hours NA 570 1,010 1,530 Number of computer hours 270 NA 870 1,030 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) A $130,000 B. $70,474 OC. $59,526 OD. $52,120
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