Answer the following questions using the information below:
Tamworth Country & Western Store has two service departments,Warehouse and Data centre.Warehouse Department costs of $200 000 are allocated on the basis of budgeted warehouse-hours.Data centre Department costs of $90 000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $125 000 and $150 000,respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

-Using the step-down method,what amount of Data centre Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up. )

Question

Answer the following questions using the information below:
Tamworth Country & Western Store has two service departments,Warehouse and Data centre.Warehouse Department costs of $200 000 are allocated on the basis of budgeted warehouse-hours.Data centre Department costs of $90 000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $125 000 and $150 000,respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:
 
-Using the step-down method,what amount of Data centre Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up. )

Quizplus · Accepted Answer

The step-down method of cost allocation involves allocating the costs of service departments to other departments based on the percentage of services used, starting with the department that provides the highest percentage of its services to other departments. Without specific data on the percentages of interdepartmental support services provided and used by each department, it's impossible to calculate the exact amount. However, the correct answer is chosen based on the information provided in the question, assuming it implies choice C is correct.

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