Answer the following questions using the information below:
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 $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:
-Using the direct method,what amount of Data Center Department costs will be allocated to Department Music?
A) $150,000
B) $66,667
C) $83,333
D) $60,000
Correct Answer:
Verified
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