Know answer, need explanation.

Cost Accounting, Allocation of Support-Dept. Costs, Common Costs, and Revenues- Reciprocal Method

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:

Using the reciprocal method, what amount of Warehouse Department costs will be allocated to Department Books?

ANSWER: 185, 593

Budgeted cost Budgeted warehouse-hours Number of computer hours Production Support Departments Departments Warehouse Data Center Department epartment Music Books S350,000 S150,000 S125.000 S150.000 l.000 1,500 NA 500 800 200 NA 1.000 Budgeted cost Budgeted warehouse-hours Number of computer hours Production Support Departments Departments Warehouse Data Center Department epartment Music Books S350,000 S150,000 S125.000 S150.000 l.000 1,500 NA 500 800 200 NA 1.000