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Question Three Choose the best answer (15 min) (20 points) A- Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse

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Question Three Choose the best answer (15 min) (20 points) A- 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: Production Departments Music Books Support Departments Warehouse Data Center Department Department $320,000 $180,000 NA 570 290 NA Budgeted costs Budgeted warehouse-hours Number of computer hours $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 service department with the highest percentage of interdepartmental support service is allocated first? (Round up) A) $180,000 B) $62,182 C) SO D) $24,393

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