Bagley Company has two service departments and two producing departments. Square

Question

Bagley Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial Services 1000 ft General Administration 3000 ft producing Department A 8000 ft producing Department B 8000 ft Total: 20,000 ft 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 what amount? A. $0 B. $7125 C. $6000 D. $5700

Explanation / Answer

Hi, the amount of cost allocated to General Administration would be Nil (0) as no service department cost is allocated to another service department under the direct method. Thanks, Aman

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.