Answered step by step
Verified Expert Solution
Question
1 Approved Answer
possible Goldfarb'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
possible Goldfarb'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: Support Departments Production Departments Budgeted costs Budgeted warehouse-hours Number of computer hours Warehouse Department Data Center Department $320,000 $180,000 570 Music $125,000 $150,000 Books NA 1,080 850 1,530 1,000 NA 290 Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) OA. $62,182 OB. $180,000 OC. $0 OD. $24,393
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started