Question: COMMON COST ALLOCATION - STEP DOWN Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $400,000 are
COMMON COST ALLOCATION - STEP DOWN Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $400,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $145,000 and $174,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Using the step-down method, Compute the costs that the support department will allocate to the two production departments with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.)
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