Bagley Corporation Has Two Service Departments and Two Operating Departments

question 48

Multiple Choice

Bagley Corporation has two service departments and two operating departments. The space occupied by each department follows: The fixed costs of Custodial Services are allocated on the basis of square feet. If these costs are budgeted at $38,000, the amount of cost allocated to General Administration under the direct method would be:

• A)$0
• B)$5,700
• C)$6,000
• D)$7,125

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Definitions:

Grenville

Often associated with George Grenville, a British Whig statesman whose policies, including the Stamp Act 1765, stirred discontent in the American colonies and contributed to the American Revolutionary War.

Western North Carolina

A region of the state of North Carolina in the United States, characterized by the Appalachian Mountains and known for its natural beauty and outdoor recreational opportunities.

Regulators

Officials or agencies responsible for controlling or supervising a particular activity or area of public interest by establishing guidelines, rules, or laws.