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Store has two service departments: Warehouse Department costs of $350,000 are allocated on the basis of budgetod warehouse-hours. Data Center Department costs of $150,000 are

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Store has two service departments: Warehouse Department costs of $350,000 are allocated on the basis of budgetod warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costsf 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 Warehouse Data Center Musie Books $250,000 $300,000 costs 350,000 $150,000 hours 2001,000 1,000 Using the direct method, allocate the service department costs to the operating departments. Cost allocated to Cost allocated to Music Books Dep Warehouse Dep. (S350,000) 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 toCost allocated to Cost allocated to Cost allocated to p.Data Center Dep. Musie Dep.Books Dep Warehouse. ($350,000) Data Center (S TOTA e. Using the reciprocal allocation method; ) Setup the simultancous equations and find the complete reciprocated costs of service departments Allocate the c ated costs youlu . reci Cost allocated to Music Dep. Books Dep

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