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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 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:

Support Departments

Production Departments

Warehouse Department

Data Center Department

Music

Books

Budgeted costs

$350,000

$150,000

$125,000

$150,000

Percent of warehouse-hours

NA

15%

50%

35%

Percent of of computer hours

10%

NA

40%

50%

Allocate the Warehouse and Data Center costs to the production departments using the reciprocal method.

Show the total costs of the production departments.

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