(Q.3) Goldfarb's Book and Music Store has two service departments: Warehouse and Data Center. Warehouse Department costs of $350,000 are allocuted 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 Operating Departments Warehouse Data Center Music Books Budgeted costs $350,000 $150.000 $250,000 $300,000 Budgeted warehouse-hours 500 1.000 1,500 Number of computer log-on hours 200 800 1,000 a. Using the direct method, allocate the service department costs to the operating departments. Cost allocated to Cost allocated to Music Dep. Books Dep. Warehouse Dep. ($350,000) Data Center Dep. ($150,000) TOTAL: b. Using the step-down method, and assuming Warehouse department is allocated first, allocate the service department costs to the operating departments. Cost allocated to Cost allocated to Cost allocated to Cost allocated to Warehouse Dep. Books Dep. Data Center Dep. Music Dep. Warehouse ($350,000) Data Center (S................) TOTAL: c. Using the reciprocal allocation method; i) Setup the simultaneous equations and find the complete reciprocated costs of service departments ii) Allocate the complete reciprocated costs you found to the operating departments. Cost allocated to Cost allocated to Musie Dep. Books Dep. Warehouse Dep. (S.....................) Data Center Dep. (S.....................) TOTAL: 4