Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $340,000 are allocated on the basis of budgeted warehouse hours. Data Center Department costs of $140,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $120,000 and $144,000, respectively Data on budgeted warehouse-hours and number of computer log-on hours are as follows Budgeted costs Budgeted warehouse-hours Number of computer hours Support Departments Warehouse Department $340,000 $120,000 1,020 NA 240 880 Using the direct method. what amount of Data Center Department costs will be allocated to Department Music (Do not round any intermediary calculations) OA. $77,778 OB. $62,222 OC. $140,000 OD. $55.495 Production Departments Music Books Data Center Department $140,000 510 NA $144,000 1,570 1.100

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $340,000 are allocated on the basis of budgeted
warehouse-hours. Data Center Department costs of $140,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books
are $120,000 and $144,000, respectively Data on budgeted warehouse-hours and number of computer log-on hours are as follows
Support Departments
OA. $77.778
OB. $62,222
OC. $140,000
OD. $55.495
Production Departments
Music
Books
Warehouse
Department
Data Center
Department
Budgeted costs
$340,000
$140,000 $120,000
Budgeted warehouse-hours
510
1,020
NA
240
Number of computer hours
NA
880
Using the direct method. what amount of Data Center Department costs will be allocated to Department Music (Do not round any intermediary calculations)
$144,000
1,570
1,100
Transcribed Image Text:Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $340,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $140,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $120,000 and $144,000, respectively Data on budgeted warehouse-hours and number of computer log-on hours are as follows Support Departments OA. $77.778 OB. $62,222 OC. $140,000 OD. $55.495 Production Departments Music Books Warehouse Department Data Center Department Budgeted costs $340,000 $140,000 $120,000 Budgeted warehouse-hours 510 1,020 NA 240 Number of computer hours NA 880 Using the direct method. what amount of Data Center Department costs will be allocated to Department Music (Do not round any intermediary calculations) $144,000 1,570 1,100
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