Answer the Following Question(s)using the Information Below

question 37

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 step-down method, what amount of Warehouse Department cost will be allocated to Music Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A)$58,333
• B)$116,667
• C)$60,833
• D)$121,667
• E)$0

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Definitions:

Sugar Act

A law passed by the British Parliament in 1764 aiming to raise revenue from the American colonies by imposing a tax on sugar and molasses imported into the colonies.

Stamp Act

A 1765 British Act imposing a tax on the colonies, requiring many printed materials in the colonies to be produced on stamped paper from London, contributing to the American Revolution.

Revolution

A dramatic and wide-reaching change in the way a society or system operates, often achieved through violent or nonviolent means.

Allegiance

Loyalty or commitment of an individual to a group or cause, often used in the context of patriotism or support for a nation.