Answer the Following Questions Using the Information Below:
Goldfarb's Book

question 139

Multiple Choice

Answer the following questions using the information below:
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:
$$\begin{array} { | l | c | c | c | c | } \hline & { \text { Support Departments } } &&{ \begin{array} { c } \text { Production } \\\text { Departments }\end{array} } \\\hline & \begin{array} { c } \text { Warehouse } \\\text { Department }\end{array} & \begin{array} { c } \text { Data Center } \\\text { Department }\end{array} & \text { Music } & \text { Books } \\\hline \text { Budgeted costs } & \$ 350,000 & \$ 150,000 & \$ 125,000 & \$ 150,000 \\\hline \text { Budgeted warehouse-hours } & \text { NA } & 500 & 1,000 & 1,500 \\\hline \text { Number of computer hours } & 200 & \text { NA } & 800 & 1,000 \\\hline\end{array}$$
-Using the step-down method,what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A) $50,000
• B) $150,000
• C) $15,000
• D) $0

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Definitions:

Initial Report

The first report or summary of findings provided at the onset of a project or investigation.

Create Tab

In software applications, a feature or space in the user interface dedicated to the generation or creation of new elements, such as documents, database entries, or sheets.

Print Orientation

The arrangement of a document's page layout when being printed, such as portrait or landscape orientation.

Landscape

An orientation of a page, screen, or image where the width is greater than the height.