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Goldfarb's Book and Music Store Has Two Service Departments,Warehouse and Data

Question 119

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Goldfarb's Book and Music Store has two service departments,Warehouse and Data Center.Warehouse Department costs of $370,000 are allocated on the basis of budgeted warehouse-hours.Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $137,500 and $165,000,respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:
Goldfarb's Book and Music Store has two service departments,Warehouse and Data Center.Warehouse Department costs of $370,000 are allocated on the basis of budgeted warehouse-hours.Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $137,500 and $165,000,respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:   Using the direct method,what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations. )  A) $180,000 B) $83,505 C) $96,495 D) $75,349
Using the direct method,what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations. )


A) $180,000
B) $83,505
C) $96,495
D) $75,349

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