LE la s Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $320,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $125,000 and $150,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Departments Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours Support Departments Warehouse Data Center Department Department $320,000 $180,000 NA 570 290 NA $125,000 $150,000 1080 1530 850 1000 Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the Warehouse department cost is allocated first? (Round up) $24,393 $62,182 $180,000 so Clayton Inn is a fast-food restaurant that sells burgers and hot dogs in a 1980s environment. The fixed operating costs of the company are $10,000 per month. The controlling shareholder, interested in product profitability and pricing, wants all costs allocated to either the burgers or the hot dogs. The following information is provided for the operations of the company: Sales for January Sales for February Burgers 4,000 6,500 Hot Dogs 2,700 2,800 What amount of fixed operating costs is assigned to the burgers and hot dogs when actual sales are used as the allocation base for February? burgers $5,970 and hot dogs $4,030 burgers $4,030 and hot dogs $5,970 burgers $3,011 and hot dogs $6,989 O burgers $6,989 and hot dogs $3,011 Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Costs Activity S1 S2 Services provided to: S2 P1 P2 25% 40% 35% 10% 55% 35% $100,000 $80,000 Fixed Costs $400,000 $500,000 P1 One of the algebraic equations in linear form for an activity using the reciprocal method is S1 = 100,000 +.1052 S2 = 80,000 +.10S1 = S2 = 80,000 + .3551 $1=100,000 + .2552