Answer the Following Question(s)using the Information Below

question 147

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 Data Centre Department costs will be allocated to Department Music?

• A)$75,000
• B)$33,333
• C)$41,667
• D)$30,000
• E)$97,222

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