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Gold'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

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Gold'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 Data Center Music Booles Department Department $350,000 $150,000 $250 000 $300 OOO NA 500 1,000 1,500 Budgeted costs Budgeted warehouse hours Number of computer hours 200 NA 800 1,000 c) Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department and the Music Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) d) Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

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