Answer question 3-4 using the information below:Fantasy Book and Music Store has two support departments and two production departments.Costs of each department are presented below. Data on budgeted warehouse-hours and numberof computer log-on hours for cost allocation of support departments are as follows:Support DepartmentsProduction DepartmentsWarehouseData CenterMusicBooksBudgeted costsBudgeted warehouse-hoursNumber of computer hours$495,0001,750$412,5003,5002,800$1,155,000$495,000N/A5,2503,500700N/A3. Using the direct method, how much are the total costs of the Books Department?A. $495,000B. $275,000C. $693,000D. $1,463,0004. Using the step-down method, what amount of Data Center Department cost will beallocated to Music Department if the service department with the highest percentage ofinterdepartmental support service is allocated first?A. $387,229B. $220,001C. $307,267D. $381,150

The costs can be allocated in different departments using various methods as direct allocation and…

Answer question 3-4 using the information below: Fantasy Book and Music Store has two support departments and two production departments. Costs of each department are presented below. Data on budgeted warehouse-hours and number of computer log-on hours for cost allocation of support departments are as follows: Support Departments Production Departments Warehouse Data Center Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $495,000 5,250 $1,155,000 $495,000 $412,500 N/A 1,750 3,500 2,800 700 N/A 3,500 3. Using the direct method, how much are the total costs of the Books Department? A. $495,000 B. $275,000 C. $693,000 D. $1,463,000 4. Using the step-down method, what amount of Data Center Department cost will be allocated to Music Department if the service department with the highest percentage of interdepartmental support service is allocated first? A. $387,229 B. $220,001 C. $307,267 $381 150

Answer question 3-4 using the information below: Fantasy Book and Music Store has two support departments and two production departments. Costs of each department are presented below. Data on budgeted warehouse-hours and number of computer log-on hours for cost allocation of support departments are as follows: Support Departments Production Departments Warehouse Data Center Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $495,000 5,250 $1,155,000 $495,000 $412,500 N/A 1,750 3,500 2,800 700 N/A 3,500 3. Using the direct method, how much are the total costs of the Books Department? A. $495,000 B. $275,000 C. $693,000 D. $1,463,000 4. Using the step-down method, what amount of Data Center Department cost will be allocated to Music Department if the service department with the highest percentage of interdepartmental support service is allocated first? A. $387,229 B. $220,001 C. $307,267 $381 150

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...

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