Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehou Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs c operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted varehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department Department Budgeted costs Budgeted warehouse-hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 Number of computer hours 270 NA 870 1070
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehou Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs c operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted varehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department Department Budgeted costs Budgeted warehouse-hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 Number of computer hours 270 NA 870 1070
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A-Using the reciprocal method, what amount of Data Center Department cost will be allocated to the Warehouse Department
B-How much does budgeted cost allocated for Department Books?
C-How much does budgeted cost allocated for Department Music?
Transcribed Image Text:Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse
Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center
Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs of
operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted
warehouse-hours and number of computer log-on hours are as follows:
Support Departments
Production Departments
Warehouse
Data Center
Music
Books
Department
Department
Budgeted costs
Budgeted warehouse-hours
$350,000
$100,000
$112,500
$135,000
NA
560
1100
1580
Number of computer hours
270
NA
870
1070
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