Answer Happy

1. using the step down method what amount of warehouse departcost will be allocated to music department if the warehouse depart cost is allocated first? round up a) $233,333 b) $116,667 c) $243,333 d) $121,667
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: Support Departments Production Departments Warehouse Dep. Data Center Dep. Music Books Budgeted costs $350,000 $150,000 $125,000 $150,000 NA 500 1,000 1.500 Budgeted warehouse- hours 200 NA 800 1.000 Number of computer hours