Question: Use the following information to answer the question below. FunnyPharm Inc., has four departments. Administration, Custodial, Production, and Bottling. Administration and Custodial are service departments.

Use the following information to answer the question below. FunnyPharm Inc., has four departments. Administration, Custodial, Production, and Bottling. Administration and Custodial are service departments. Production and Bottling are the Operations Departments. Information for the departments overhead is as follows: Service Department Operating Department Administration Custodial Production Bottling Cost Before Allocation $150 000 $50 000 $75 000 $225 000 Employee Hours 10 000 5 000 20 000 30 000 Space Occupied (Square Metres) 1 500 500 12 000 8 000 The costs of the Administration department are allocated based on Employee Hours, while the costs of the Custodial Department is allocated based on space occupied. Using the Direct Method, what is the amount of Administration Cost that will be allocated to the Bottling Department? Question 34 options: $90 000 $30 000 $75 000 $60 000

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