Homework answers / question archive / Siti's Book and Music Store has two service departments, Warehouse and Data Center

Siti's Book and Music Store has two service departments, Warehouse and Data Center

Accounting

Share With

Siti's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of RM70,000 are allocated on the basis of budgeted warehouse- hours. Data Center Department costs of RM200,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are RM 142,500 and RM171,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Departments Support Departments Warehouse Data Center Music Department Department Books RM370,000 RM200,000 RM142,500 RM171,000 Budgeted costs Budgeted warehouse- hours NA 590 1000 1600 Number of computer hours 250 NA 860 1010 Using the step-down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.)