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GUO'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
GUO'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 $100,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Using the STEP-DOWN method, what amount of total support department costs (i.e., Warehouse Department \& Data Department) will be allocated to Department Books? Start from Warehouse Department. Please choose the best answer (Do not round any intermediary calculations.)
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