4. Bagley Corporation has two service departments and two operating departments.

The space occupied by each department can be seen in the chart below.

The fixed costs of Custodial Services are allocated on the basis of square feet. If these

costs are budgeted at $38,000, what would be the amount of cost allocated to General

Administration under the direct method?

A.

$6,000

B.

$5,700

C.

$0

D.

$7,125