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it should be noted that the proper cost allocated to music and books are in the beginning passage. Give proper explanation. Gold's Book and Music
it should be noted that the proper cost allocated to music and books are in the beginning passage. Give proper explanation.
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 Warehouse Data Center Department Department $350,000 $150,000 NA 500 Production Departments Music Books $125,000 $150,000 1,000 1,500 Budgeted costs Budgeted warehouse- hours Number of computer hours 200 NA 800 1,000 Answer the following questions using the information below: a) Using the direct method, what amount of Warehouse Department costs will be allocated to both production departments - Music and Books? b) Using the direct method, what amount of Data Center Department costs will be allocated to both production departments - Music and Books? 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)Step by Step Solution
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