Answer the Following Question(s)using the Information Below

question 11

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

• A)$58,671
• B)$33,333
• C)$46,296
• D)$41,667
• E)$0

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Original Investment

The initial amount of money used to purchase an asset, start a business venture, or invest in a financial instrument.

Operating Business

An active entity engaged in commercial, industrial, or professional activities to generate profit.

Gross Profit

Gross Profit is the financial gain obtained after deducting the cost of goods sold from the total revenue, indicating the efficiency of a company's core business activities.