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Answer the Following Questions Using the Information Below

Question 46

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:
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 Data centre Department costs will be allocated to Department Music? A) $30 000 B) $40 000 C) $90 000 D) $41 667
-Using the direct method,what amount of Data centre Department costs will be allocated to Department Music?


A) $30 000
B) $40 000
C) $90 000
D) $41 667

Correct Answer:

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