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

question 92

Multiple Choice

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:
Production
Support DepartmentsDepartments

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? (Do not round any intermediary calculations.)

• A) $33,856
• B) $104,953
• C) $125,393
• D) $34,702

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Definitions:

Social Dominance

The hierarchy established within social species, where certain individuals exert control or hold higher status, often leading to priority in resources and mating opportunities.

Adaptive Values

The degree to which a trait enhances the survival and reproductive success of an organism in its environment.

Unmarried Woman

A female who has not entered into the legal or cultural institution of marriage.

Good Looks

A subjective evaluation of an organism's physical appearance, often influencing mate selection and social interaction.