Bagley Company Has Two Service Departments and Two Producing Departments

Multiple Choice

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.