Bagley 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.

Question

Bagley 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.

Quizplus · Accepted Answer

The Answer of Bagley 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.

Bagley Company Has Two Service Departments and Two Producing Departments