FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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  • $0.

  • $10,444.

  • $8,000.

  • $8,000.

Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows:
Custodial services
2,000 feet
General administration
4,000 feet
Producing Department A
Producing Department
9,000 feet
9,000 feet
24,000 feet
The department costs of Custodial Services are allocated on a basis of square footage of space. If Custodial Services costs are budgeted at $48,000, the
amount of cost allocated to General Administration under the direct method would be:
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Transcribed Image Text:Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial services 2,000 feet General administration 4,000 feet Producing Department A Producing Department 9,000 feet 9,000 feet 24,000 feet The department costs of Custodial Services are allocated on a basis of square footage of space. If Custodial Services costs are budgeted at $48,000, the amount of cost allocated to General Administration under the direct method would be:
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