Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000 are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of S180,000 are allocatedbased on the number of computer log - on hours. The costs of operating departments Music and Books are $135,000 and S162,000, respectively. Data on budgeted warehouse - hours and numberf computer log - on hours are as follows:Support DepartmentsWarehouseDepartmentProduction DepartmentsData CenterDepartmentMusicBooksBudgeted costsBudgeted warehouse - hoursNumber of computer hours$360,000$180.000$135,000$162.000NA5701,0601,580300NA8301,100Using 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)O A. $62,945O B. $0OC. $24,215O D. $180,000

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000 are allocated on the basis of budgeted warehouse – hours. Data Center Department costs of $180,000 are allocate based on the number of computer log – on hours. The costs of operating departments Music and Books are $135,000 and $162,000, respectively. Data on budgeted warehouse – hours and number of computer log - on hours are as follows: Support Departments Data Center Department Production Departments Warehouse Music Books Department $360,000 $135.000 Budgeted costs Budgeted warehouse- hours Number of computer hours $180.000 $162,000 NA 570 1,060 1,580 300 NA 830 1,100 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) O A. $62,945 OB. $0 OC. $24,215 OD. $180.000

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000 are allocated on the basis of budgeted warehouse – hours. Data Center Department costs of $180,000 are allocate based on the number of computer log – on hours. The costs of operating departments Music and Books are $135,000 and $162,000, respectively. Data on budgeted warehouse – hours and number of computer log - on hours are as follows: Support Departments Data Center Department Production Departments Warehouse Music Books Department $360,000 $135.000 Budgeted costs Budgeted warehouse- hours Number of computer hours $180.000 $162,000 NA 570 1,060 1,580 300 NA 830 1,100 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) O A. $62,945 OB. $0 OC. $24,215 OD. $180.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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