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Bagley Company has two service departments and two producing departments. Square footage of space occupied by each department follows: Custodial Services 1000 ft General Administration 3000 ft producing Department A 8000 ft producing Department B 8000 ft The 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 what amount?

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Accounting Basics, Accounting

Category:- Accounting Basics
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