1. using the step down method what amount of warehouse departcost will be allocated to music department if the warehouse depart cost is allocated first? round up a) $233,333 b) $116,667 c) $243,333 d) $121,667

2. using the direct method, what amount of warehouse department costs will be allocated to department books?

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: Support Departments Production Departments Warehouse Dep. Data Center Dep. Music Books Budgeted costs $350,000 $150,000 $125,000 $150,000 NA 500 1,000 1.500 Budgeted warehouse- hours 200 NA 800 1.000 Number of computer hours