Answer the Following Questions Using the Information Below

question 126

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 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)$41 667
• B)$58 671
• C)$54 844
• D)$33 333

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Definitions:

Green Accounting

A type of accounting that attempts to factor environmental costs into the financial results of operations.

Gross Domestic Product

An indicator of a nation's economic output, reflecting the aggregate worth of all produced goods and services within a defined timeframe.

Natural Resource Depletion

Refers to the exhaustion of raw materials within an environment due to overuse, misuse, or unsustainable use, often leading to long-term environmental and economic consequences.

National Income Accounting

A system that records a country's economic transactions and measures its economic performance.