"what amount of warehouse department cost will be allocated to department music if the service department with the highest percentage"

Complete Question:

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $310,000 are allocated on the basis of budgeted warehouse -hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $102,500 and $123,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Departments Support Departments Warehouse Data Center Department Department Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $310,000 NA 270 $100,000 520 NA $102,50 0 1080 900 $123,00 0 1590 1020 Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediate calculations.) A) $34,702 B) $125,393 C) $33,856 D) $104,953

Goldfarb's Book and Music Store

Amount of warehouse department cost allocated to department music is:

D) $104,953

Explanation:

a) Data and Calculations:

                                       Support Departments      Production Departments

                                      Warehouse   Data Center      Music        Books

Budgeted costs                $310,000      $100,000     $102,500   $123,000

Budgeted warehouse-hours  NA             520              1,080           1,590

Number of computer hours    270           NA                 900            1,020

b) Allocation of Warehouse costs:

Basis for allocation is budgeted warehouse hours:

Data Center = 520

Music =         1,080

Books =        1,590

Total hours  3,190

Allocation of Warehouse cost to Music:

1,080/3,190 * $310,000 = $104,953

b) The step-down method for allocating the manufacturing overheads of service departments to the production departments involves first allocating one service department's cost to the production departments and other service departments in a step-down manner.  After all service departments' costs have been so allocated, there is some re-allocation which then eliminates the costs of some departments.  This continues until all service departments' costs are allocated.  It is unlike the direct method which allocates one service department costs without allocating them to another service department.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.