Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $370,000 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 $137,500 and $165,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Budgeted costs Support Departments Operating Departments Data Warehouse Music Books Center $370,000 $180,000 $137,500 NA 500 1,050 $165,000 1,520 Budgeted warehouse-hours Number of computer 210 hours ΝΑ 900 1,040 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? a. $83,505 b. $180,000 c. $96,495 d. $75,349

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $370,000 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 $137,500 and $165,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Budgeted costs Support Departments Operating Departments Data Warehouse Music Books Center $370,000 $180,000 $137,500 NA 500 1,050 $165,000 1,520 Budgeted warehouse-hours Number of computer 210 hours ΝΑ 900 1,040 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? a. $83,505 b. $180,000 c. $96,495 d. $75,349

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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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?