Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Tamworth Country & Western Store has two service departments,Warehouse and Data centre.Warehouse Department costs of $200 000 are allocated on the basis of budgeted warehouse-hours.Data centre Department costs of $90 000 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) $90 000
B) $120 000
C) $70 000
D) $87 500