Answer the Following Questions Using the Information Below:
Goldfarb's Book

question 22

Multiple Choice

Answer the following questions using the information below:
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:
$$\begin{array} { | l | c | c | c | c | } \hline & { \text { Support Departments } } &&{ \begin{array} { c } \text { Production } \\\text { Departments }\end{array} } \\\hline & \begin{array} { c } \text { Warehouse } \\\text { Department }\end{array} & \begin{array} { c } \text { Data Center } \\\text { Department }\end{array} & \text { Music } & \text { Books } \\\hline \text { Budgeted costs } & \$ 350,000 & \$ 150,000 & \$ 125,000 & \$ 150,000 \\\hline \text { Budgeted warehouse-hours } & \text { NA } & 500 & 1,000 & 1,500 \\\hline \text { Number of computer hours } & 200 & \text { NA } & 800 & 1,000 \\\hline\end{array}$$
-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) $233,333
• B) $116,667
• C) $243,333
• D) $121,667

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Definitions:

Fault

A crack in the Earth's crust resulting from the movement of rock on either side of the crack, which can lead to earthquakes.

Tectonics

The study of the Earth's crust and mantle involving the processes that structure the Earth's surface, including the formation of mountains, continents, and oceans.

Minerals

Naturally occurring, solid chemical compounds or elements with a defined composition and crystal structure, found in the Earth's crust.

Stability

The state or quality of being resistant to change, disruption, or displacement, often used in various scientific disciplines such as chemistry, physics, and engineering to describe systems or structures.