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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $330,000 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 $330,000 are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of $100,000 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: Production Departments Music Books Support Departments Warehouse Data Center Department Department $330,000 $100,000 NA 560 280 NA Budgeted costs Budgeted warehouse - hours Number of computer hours $107,500 1,090 880 $129,000 1,560 1,070 the service department with the highest percentage of Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department interdepartmental support service is allocated first? (Round up) ... O A. $0 OB. $33,939 OC. $100,000 OD. $12,556
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