Answer the Following Question(s)using the Information Below

question 102

Multiple Choice

Answer the following question(s) using the information below:
Betty's Book and Music Store has two service departments, Warehouse and Data Centre.Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours.Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $125,000 and $150,000, respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

-Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books?

• A)$70,000
• B)$105,000
• C)$75,000
• D)$87,500
• E)$30,000

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Definitions:

Employees

Individuals who are hired by a business or organization to work under a contract of employment and get paid in return.

Mean Salary

The average amount of money earned by employees in a particular job or industry, calculated by summing all salaries and dividing by the number of employees.

Chi-Squared Distribution

A probability distribution that is widely used in inferential statistics for hypothesis testing and estimating variances.

Left-Tailed Area

The part of a distribution graph that appears to the left of a specified value, often related to hypothesis testing in statistics.