Rich Company Has a Custodial Services Department Which Services the Company's

Multiple Choice

Rich Company has a Custodial Services department which services the company's Maintenance department and two operating departments,Machinery and Milling.Costs of Custodial Services are allocated to the other departments on the basis of square footage of space occupied.The amount of space occupied by each department is given below: Budgeted costs in Custodial Services amount to $86,400.The amount of Custodial Services cost allocated to Maintenance under the step-down method would be:

A) $5,184
B) $5,400
C) $0
D) $5,760