In: Accounting
Betty's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs are allocated on the basis of warehouse-hours. Data Center Department costs are allocated based on the number of computer hours. The costs of departments, warehouse-hours and number of computer hours are as follows:
Support Departments |
Operating Departments |
|||
Warehouse |
Data Center |
Music |
Books |
|
Departmental costs |
$ 60,000 |
$40,000 |
$60,000 |
$70,000 |
Warehouse-hours |
- |
400 |
200 |
400 |
Computer hours |
250 |
- |
375 |
375 |
The total cost accumulated in the music department using the direct method is
Group of answer choices
$104,000
$126,000
$100,000
$130,000
2
The total cost accumulated in the music department using the step-down method is (assume the warehouse department goes first)
Group of answer choices
$100,000
$130,000
$126,000
104,000
3
The total cost accumulated in the music department using the reciprocal method is
Group of answer choices
$122,402
$102,222
$142,471
$127,778