Jamison Company Has Two Service Departments and Two Producing Departments

Multiple Choice

Jamison Company has two service departments and two producing departments.Square footage of space occupied by each department follows: $$\begin{array} { | l | r | } \hline \text { Custodial services } & 1,000 \mathrm { ft } \\\hline \text { General administration } & 3,000 \mathrm { ft } \\\hline \text { Producing department A } & 8,000 \mathrm { ft } \\\hline \text { Producing department B } & \underline{8,000 \mathrm { ft }} \\\hline & 20,000 \mathrm { ft } \\\hline\end{array}$$ 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.