Exercise Six $(10$ Points$)$:

Betty's Book and Music Store has two service departments, Warehouse and Data Centre. Warehouse Department costs

are allocated on the basis of budgeted warehouse$-$hours. Data Centre Department costs are allocated based on the number

of computer log$-$on hours. Data on budgeted warehouse$-$hours and number of computer log$-$on hours are as shown below.

Required:

Allocate the two support departments' costs to the two operating departments using the Direct Method.

Department Allocation Basis as percentages:

Reallocation of Costs: