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Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs...

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of 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

Production Departments

Warehouse Department

Data Center Department

Music

Books

Budgeted costs

$350,000

$150,000

$125,000

$150,000

Budgeted warehouse-hours

NA

500

1,000

1,500

Number of computer hours

200

NA

800

1,000

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 up)

$66,667

$117,342

$92,592

$83,333

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