Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial services 1,000 ft General administration 3,000 ft Producing department A 8,000 ft Producing department B 8,000 ft 20,000 ftThe 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: $6,000. $5,700. $0. $7,125.
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