Bagley Corporation has two service departments and two operating departments. The space occupied by each department follows: The fixed costs of Custodial Services are allocated on the basis of square feet. If these costs are budgeted at $38,000, the amount of cost allocated to General Administration under the direct method would be:
A)$0
B)$5,700
C)$6,000
D)$7,125

Question

Bagley Corporation has two service departments and two operating departments. The space occupied by each department follows:  The fixed costs of Custodial Services are allocated on the basis of square feet. If these costs are budgeted at $38,000, the amount of cost allocated to General Administration under the direct method would be:
A)$0 
B)$5,700 
C)$6,000 
D)$7,125

Quizplus · Accepted Answer

The Answer of Bagley Corporation has two service departments and two operating departments. The space occupied by each department follows:  The fixed costs of Custodial Services are allocated on the basis of square feet. If these costs are budgeted at $38,000, the amount of cost allocated to General Administration under the direct method would be:
A)$0 
B)$5,700 
C)$6,000 
D)$7,125

Bagley Corporation Has Two Service Departments and Two Operating Departments