Answer the Following Questions Using the Information Below

question 111

Multiple Choice

Answer the following questions 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 Department Music 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:

Sustainability

The practice of conducting business in a way that is environmentally responsible and resource-efficient, aiming to reduce the environmental impact and ensure long-term ecological balance.

Supply Chain Surplus

The difference between the value generated by the final product and the costs incurred in making the product available in the market, indicating overall supply chain efficiency.

Emissions Tax

A tax imposed on companies based on the amount of pollution their operations emit, aimed at encouraging environmentally friendly practices.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, meaning higher income earners pay a higher rate of tax.