Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000 are allocated on the basis ofbudgeted warehouse - hours. Data Center Department costs of $100,000 are allocated based on the number of computer log - on hours. The costs of operatingdepartments Music and Books are $122,500 and $147,000, respectively. Data on budgeted warehouse - hours and number of computer log - on hours are as follows:Support DepartmentsProduction DepartmentsWarehouseData CenterMusicBooksDepartment$390,000Department$100,000Budgeted costsBudgeted warehouse - hoursNumber of computer hours$122,500$147.000NA5801,0401,600220NA8101,010DrUsing the step - down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highestpercentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.)O A. $75,739O B. $55,495O C. $94,452O D. $44,505

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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000 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 of operating departments Music and Books are $122,500 and $147,000, respectively. Data on budgeted warehouse - hours and number of computer log - on hours are as follows: Support Departments Production Departments Warehouse Data Center Department $100,000 Music Books Department $390,000 Budgeted costs Budgeted warehouse - hours Number of computer hours $122,500 $147,000 NA 580 1,040 1,600 220 NA 810 1,010 Using the step - down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.) A. $75,739 O B. $55,495 OC. $94,452 O D. $44,505 O O C

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000 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 of operating departments Music and Books are $122,500 and $147,000, respectively. Data on budgeted warehouse - hours and number of computer log - on hours are as follows: Support Departments Production Departments Warehouse Data Center Department $100,000 Music Books Department $390,000 Budgeted costs Budgeted warehouse - hours Number of computer hours $122,500 $147,000 NA 580 1,040 1,600 220 NA 810 1,010 Using the step - down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.) A. $75,739 O B. $55,495 OC. $94,452 O D. $44,505 O O C

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...

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