Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below:
Betty's Book and Music Store has two service departments, Warehouse and Data Centre.Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours.Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $125,000 and $150,000, respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

-Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books?

A) $70,000
B) $105,000
C) $75,000
D) $87,500
E) $30,000