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Goldfarb's Book and Music Store has two service departments: Warechouse and Data Center. Warchouse Department costs of $350,000 are allocated on the basis of budgetod warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costsf operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows Support Departments Warehouse Data Center Operating Departments Musie Books $250,000 300,000 costs 350,000 $150,000 hours 2001,000 1,000 .Using the direct method, allocate the service department costs to the operating departments Cost allocated to Music Dep. Cost allocated to Books Dep Warehouse Dep. (S350,000) Data Center Dep. (S150,000) TOTAL: b. Using the step-down method, and assuming Warehouse department is allocated first, allocate the service department costs to the operating departments Cost allocated toCost allocated to Cost allocated to Cost allocated to p. Data Center Dep. Musie Dep.Books Dep Warehouse ($350,000) Data Center e. Using the reciprocal allocation method i) Setup the simultaneous equations and find the complete reciprocated costs of service departments Allocate the com to to Cost allocated to Music Dep Books Dep. ii) Allocate the complete reciprocated costs you found to the operating departments Cost allocated to Cost allocated to Music Dep. Books Dep Data Center Dep

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