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Business, 08.11.2019 01:31 bnbjj

Jamison company has two service departments and two producing departments. square footage of space occupied by each department follows:

custodial services 1,000 ft
general administration 3,000 ft
producing department a 8,000 ft
producing department b 8,000 ft
20,000 ft

the department costs of custodial services are allocated on a basis of square footage of space. if custodial services costs are budgeted at $38,000, the amount of cost allocated to general administration under the direct method would be:

$5,700.
$0.
$7,125.
$6,000

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