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

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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 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 S300,000, respectively. Data on budgeted warehouse-hours and number ofc ter log-on hours are as follows: Operating Departments Books $250,000 S300,000 1,500 Warehouse Data Center Music Budgeted costs Bud Number of computer log-on hours 500 1,000 800 200 a. Using the direct method, allocate the service department costs to the o Cost allocated to Cost allocated to Music Books De Warehouse Dep. ($350,000) Data Center Dep. ($150,000) TOTAL b. Using the step-down method, and assuming Warehouse department is allocated first, allocate the service t costs to the o Cost allocated to Warehouse Cost allocated to Cost allocated to Cost allocated to Data Center I Music Books I Warehouse ($350,000) Data Center TOTAL c. Using the reciprocal allocation method; i) Setup the simultaneous equations and find the complete reciprocated costs of service departments Allocate the c lete reci costs you found to the o ents Cost allocated to Cost allocated to Music I Books Warehouse Dep. (S Data Center Dep. TOTAL