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:

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

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

Quizplus · Accepted Answer

Data Center Department costs allocated to Department Music = 900 / (900 + 1040)× $180,000 = $83,505

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