Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehou Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs c operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted varehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department Department Budgeted costs Budgeted warehouse-hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 Number of computer hours 270 NA 870 1070
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehou Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs c operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted varehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department Department Budgeted costs Budgeted warehouse-hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 Number of computer hours 270 NA 870 1070
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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A-Using the reciprocal method, what amount of Data Center Department cost will be allocated to the Warehouse Department
B-How much does budgeted cost allocated for Department Books?
C-How much does budgeted cost allocated for Department Music?
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