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

question 21

Multiple Choice

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 $200,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $142,500 and $171,000, 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 Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.)

• A) $144,992
• B) $91,979
• C) $123,487
• D) $108,021

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Definitions:

Hematocrit

Hematocrit is a blood test measure that indicates the proportion of blood volume occupied by red blood cells, crucial for diagnosing anemia or polycythemia.

Hematocrit

The proportion of blood volume that is occupied by red blood cells, a crucial measurement in diagnosing and managing various medical conditions.

Erythrocytes

Red blood cells that are responsible for carrying oxygen from the lungs to all parts of the body and returning carbon dioxide to the lungs for exhalation.

Fibrinogen

A blood plasma protein that's converted to fibrin in the clotting process, essential for wound healing.