Bookman Company has three operating departments: Department A, Department B and Department C. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied.
- Departments Department A Department B Department C
- Number of employees 2,700 employees 6,300 employees 9,000 employees
- Square feet occupied 52,500 Sq. Ft. 67,500 Sq. Ft. 30,000 Sq Ft.
Assume that Bookman allocated $11,250 administrative costs to Department A. Based on the above data, determine the company's total administrative costs.