Answer the Following Question(s)using the Information Below

question 11

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 Data Centre Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A)$58,671
• B)$33,333
• C)$46,296
• D)$41,667
• E)$0

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer.

Consolidated Common Stock

Shares that represent ownership in a corporation that has combined its financial statements with those of its subsidiaries to present a single set of financials for the entire enterprise.

Acquisition Business Combination

An acquisition business combination is a transaction or event where one entity gains control over another, often involving the purchase of the target company's stock or assets.

Fair Value

The estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.