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Goldfarb's Book and Music Store has two service departments (Warehouse, and Data Center) and two operating departments (Music, and Books). Warehouse Department costs of $

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Goldfarb's Book and Music Store has two service departments (Warehouse, and Data Center) and two operating departments (Music, and Books). Warehouse Department costs of $ 420000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of S 190000 are allocated based on the number of computer log-on hours. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department Department $ 420000 Budgeted costs $190000 $125000 $150000 Budgeted warehouse-hours 500 1000 1500 (by Warehouse Dept.) Budgeted computer log-on hours 200 800 (by Data Center Dept.) 1000 (For each item below write your answers inside the boxes.) a) Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? Ans = $ b) Using the step-down method, and allocating Data Center Department costs first, what amount of Data Center Department cost will be allocated to Department Music? Ans = $

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