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Question - ?Goldfarb's Book and Music Store has two service? departments, Warehouse and Data Center. Warehouse Department costs of? $310,000 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? $102,500 and? $123,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as? follows:
Support Departments
Production Departments
Warehouse Department
Data Center Department
Music
Books
Budgeted costs
?$310,000
?$100,000
?$102,500
?$123,000
Budgeted warehouse-hours
NA
520
?1,080
?1,590
Number of computer hours
270
900
?1,020
Using the step-down ?method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated? first?
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