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Harry Dishman owns and operates Harry's Septic Service and Legal Advice. Harry's two revenue generating (production) operations are supported by two service departments: Clerical and

Harry Dishman owns and operates Harry's Septic Service and Legal Advice. Harry's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial. Costs in the service departments are allocated in the following order using the designated allocation bases:

Clerical:

Variable cost: expected number of work orders processed

Fixed cost: long-run average number of work orders processed

Janitorial:

Variable cost: labor hours

Fixed cost: square footage of space occupied

Average and expected activity levels for next month (June) are as follows:

No.of Work Labor Square
Orders Expected Average Hours Footage
Septic Service 64 122 700 1,940
Legal Advice 39 34 980 2,340
Clerical 34 34 540 1,740
Janitorial 19 34 340 1,140

Expected costs in the service departments for June are as follows:

Clerical Janitorial
Variable Costs $13,400 $5,600
Fixed Costs $ 9,800 $ 2,200

Under the direct method of allocation, what is the total amount of service cost allocated to the Legal Advice operation for June? (Round all calculations to the nearest whole dollar.)

$11,864.

$10,212.

$11,679.

$8,751.

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