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Accounting Assignment | Custom Assignment Help

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:

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Production

Support Departments                Departments

Warehouse Department

Data Center Department

Music

Books

Budgeted costs

  • $370,000
  • $180,000
  • $137,500
  • $165,000

Budgeted warehouse-hours

  • NA
  • 500
  • 1050
  • 1520

Number of computer hours

  • 210
  • NA
  • 900
  • 1040

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

A. $75,349

B. $96,495

C. $83,505

D. $180,000

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