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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 hoursCALCULATE AND EXPLAN ALL QUESTIONS !!!!!! THX !!!!!
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 c ter log-on hours are as follows: Support Departments OingDepartments Books Music $250,000 1,000 800 WarehouseData Center Bud Budgeted warehouse-hours S350,000 S150,000 500 cosis S300,000 1,500 1,000 hours 200 a. Using the direct method, allocate the service t costs to the o ts 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 artment costs to the atin Cost allocated Warehouse De rtments to Cost allocated to Cost allocated to Cost allocated to Data Center Music Books Warehouse. ($350,000) Data Center (S TOTAL c. Using the reciprocal allocation method; i) Setup the simultaneous equations and find the complete reciprocated costs of service departments ii) Allocate the ete reciprocated costs vou found to the Cost allocated to ing artments Cost allocated to Music Books Warehouse Dep (S Data Center Dep. (S TOTALStep by Step Solution
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