Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial services1,000feetGeneral administration3,000feetProducing Department A8,000feetProducing Department B8,000feet 20,000feetThe 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:
A. $5,700.
B. $6,000.
C. $7,125.
D. $0.
Answer: D
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