Answer the Following Question(s)using the Information Below

question 18

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 the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A)$25,000
• B)$75,000
• C)$7,500
• D)$0
• E)$17,500

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Definitions:

Dependent Variable

A variable in statistical modeling whose value is influenced or predicted by one or more other variables.

Independent Variable

A variable in an experiment or model that is manipulated to observe its effect on a dependent variable.

Coefficient Of Determination

A measure used in statistical analysis that assesses the proportion of variance in the dependent variable that can be predicted from the independent variable(s).

Dependent Variable

The variable in an experiment or study that is affected by changes in the independent variable.