9. How does the net realizable value method allocate joint costs?

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Part 1

A. allocates joint costs to joint products in a way that each product has an identical gross-margin percentage

B. allocates joint costs to joint products on the basis of the relative sales value at the split-off point

C. allocates joint costs to joint products on the basis of relative NRV

D. allocates joint costs to joint products on the basis of a comparable physical measure at the split-off point

10.

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $310,000 are allocated on the basis of budgeted

warehousehours. Data Center Department costs of $100,000 are allocated based on the number of computer logon hours. The costs of operating departments Music and Books are $102,500 and $123,000, respectively. Data on budgeted warehousehours and number of computer logon hours are as follows:

	Support Departments	Production Departments
	Warehouse Department	Data Center Department	Music	Books
Budgeted costs	$310,000	$100,000	$102,500	$123,000
Budgeted warehousehours	NA	520	1,080	1,590
Number of computer hours	270	NA	900	1,020

Using the

stepdown

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? (Do not round any intermediary calculations.)

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Part 1

A. $33,856

B. $125,393

C. $104,953

D. $34,702