Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
Q1: The Maintenance Department has been servicing Gizmo
Q48: When using the direct allocation method, a
Q86: When actual cost-allocation rates are used, managers
Q112: Why do organizations use budgeted rates instead
Q115: Hanung Corp has two service departments,Maintenance and
Q117: Hanung Corp has two service departments,Maintenance and
Q118: Electro Corp sells a refrigerator and a
Q123: Buzz's Educational Software Outlet sells two or
Q133: In certain high-cost defense contracts involving new
Q140: Which of the following statements is true