Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows:
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:
A) $0.
B) $7,125.
C) $6,000.
D) $5,700.
Correct Answer:
Verified
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