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QUESTION 3 Ted's Surfboard and Surf ski Store has two service departments, Warehouse and Accounting. The Warehouse Department costs of $500,000 are allocated on the
QUESTION 3 Ted's Surfboard and Surf ski Store has two service departments, Warehouse and Accounting. The Warehouse Department costs of $500,000 are allocated on the basis of budgeted warehouse hours. Accounting Department costs of $350,000 are allocated based on the number of transactions in each department. The costs of the operating departments Surfboard and Surf ski are $450,000 and $200,000, respectively. Data on budgeted warehouse-hours and number of transactions are as follows: Budgeted costs Budgeted warehouse-hours Number of transactions Support Departments Production Departments Warehouse Accounting Surfboards Surf Skis Department Department $500,000 $350,000 $450,000 $200,000 NA 1,000 2,000 1,500 1,500 NA 900 1,200 Using the direct method how much of Accounting Department costs is allocated to Surf Skis ? Do not use commas when you present your answer e.g. write as $1000 not $1,000. Round to the nearest whole dollar
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