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
$126,000
$100,000
$130,000
$104,000
The total cost accumulated in the music department using the
step-down method is (assume the warehouse department goes
first)
Group of answer choices
104,000
$100,000
$126,000
$130,000
The total cost accumulated in the music department using the
reciprocal method is
Group of answer choices
$102,222
$122,402
$127,778
$142,471