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:

Using the direct method,what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations. )

Question

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:

Using the direct method,what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations. )

Quizplus · Accepted Answer

Warehouse Department costs allocated to Department Books = 1580 / (1100 + 1580)× $350,000 = $206,343

Goldfarb's Book and Music Store Has Two Service Departments,Warehouse and Data