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Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? Using the direct method, what amount of Warehouse Department costs will be allocated to Department Music? Using the direct method, what amount of Data Center Department costs will be allocated to Department Music?

Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? Using the direct method, what amount of Warehouse Department costs will be allocated to Department Music? Using the direct method, what amount of Data Center Department costs will be allocated to Department Music?

Cornerstones of Cost Management (Cornerstones Series)
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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Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books?

Using the direct method, what amount of Warehouse Department costs will be allocated to Department Music?

Using the direct method, what amount of Data Center Department costs will be allocated to Department Music?

 

Using the direct method, what amount of Data Center Department costs will be allocated to Department Books?

 

Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department

 

Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music

 

Using the reciprocal method, what amount of Data Center Department cost will be allocated to the Warehouse Department

 

Using the reciprocal method, what amount of Warehouse Department cost will be allocated to the Department Music

 

How much does budgeted cost allocated for Department Books?

 

How much does budgeted cost allocated for Department Music?

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse 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 of operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Вooks Department Department Budgeted costs Budgeted warehouse-hours Number of computer hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 270 NA 870 1070
Transcribed Image Text:Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse 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 of operating departments Music and Books are $112,500 and $135,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Вooks Department Department Budgeted costs Budgeted warehouse-hours Number of computer hours $350,000 $100,000 $112,500 $135,000 NA 560 1100 1580 270 NA 870 1070
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