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: Budgeted costs Support Departments Operating Departments Data Warehouse Music Books Center $370,000 $180,000 $137,500 NA 500 1,050 $165,000 1,520 Budgeted warehouse-hours Number of computer 210 hours ΝΑ 900 1,040 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? a. $83,505 b. $180,000 c. $96,495 d. $75,349

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: Budgeted costs Support Departments Operating Departments Data Warehouse Music Books Center $370,000 $180,000 $137,500 NA 500 1,050 $165,000 1,520 Budgeted warehouse-hours Number of computer 210 hours ΝΑ 900 1,040 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? a. $83,505 b. $180,000 c. $96,495 d. $75,349

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $340,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $140,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $120,000 and $144,000, respectively Data on budgeted warehouse-hours and number of computer log-on hours are as follows Support Departments OA. $77.778 OB. $62,222 OC. $140,000 OD. $55.495 Production Departments Music Books Warehouse Department Data Center Department Budgeted costs $340,000 $140,000 $120,000 Budgeted warehouse-hours 510 1,020 NA 240 Number of computer hours NA 880 Using the direct method. what amount of Data Center Department costs will be allocated to Department Music (Do not round any intermediary calculations) $144,000 1,570 1,100
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