Answer the Following Questions Using the Information Below

question 81

Multiple Choice

Answer the following questions using the information below:
Tamworth Country & Western Store has two service departments,Warehouse and Data centre.Warehouse Department costs of $200 000 are allocated on the basis of budgeted warehouse-hours.Data centre Department costs of $90 000 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)$66 667
• B)$121 667
• C)$116 667
• D)$60 833

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Definitions:

Travel Time

The duration required to move from one location to another, which can vary based on mode of transport and conditions.

College Student

An individual enrolled in an institution of higher education to pursue an academic degree or certificate.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, calculated as the square root of the variance.

Normally Distributed

Describes a probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.