Goldman Supplies has two service departments, Inventory and Support Center. Inventory Department costs of $420,000 are allocated on the basis of budgeted inventory-hours. Support Center Department costs of $210,000 are allocated based on the number of system access hours. The costs of operating departments Books and Stationery are $150,000 and $170,000, respectively. Data on budgeted inventory-hours and number of access hours are as follows: Support Departments Operating Departments Budgeted costs Inventory-hours System access hours Inventory $420,000 NA 230 Support Center $210,000 520 NA Using the direct method, what amount of Support Center Department costs will be allocated to Department Books? a. $84,700 b. $210,000 c. $91,520 d. $77,840

Goldman Supplies has two service departments, Inventory and Support Center. Inventory Department costs of $420,000 are allocated on the basis of budgeted inventory-hours. Support Center Department costs of $210,000 are allocated based on the number of system access hours. The costs of operating departments Books and Stationery are $150,000 and $170,000, respectively. Data on budgeted inventory-hours and number of access hours are as follows: Support Departments Operating Departments Budgeted costs Inventory-hours System access hours Inventory $420,000 NA 230 Support Center $210,000 520 NA Using the direct method, what amount of Support Center Department costs will be allocated to Department Books? a. $84,700 b. $210,000 c. $91,520 d. $77,840

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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