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

Recognize the role of price controls in creating inefficiencies in the market.

Evaluate the effects of minimum wage laws on employment and market dynamics.

Distinguish between the concepts of price ceilings and price floors.

Understand the concept of deadweight loss due to price controls.

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Definitions:

Mass

Abnormal collection of tissue.

Benign Tumor

A non-cancerous growth in the body that does not invade nearby tissues or spread to other parts of the body.

Cyst

A closed pocket or pouch of tissue that can be filled with air, fluid, pus, or other material.

Overlapping Boundaries

Multiple sites of carcinoma without identifiable borders.