FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows:
Custodial services | 1,700 | feet |
---|---|---|
General administration | 3,700 | feet |
Producing Department A | 8,700 | feet |
Producing Department B | 8,700 | feet |
22,800 | feet |
The department costs of Custodial Services are allocated on a basis of square footage of space. If Custodial Services costs are budgeted at $45,000, the amount of cost allocated to General Administration under the direct method would be:
Multiple Choice
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$7,400.
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$9,432.
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$7,303.
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$0.
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