Brake pedal soft-travel too far 92 Jetta 4 DR 1.8L A/T 265K

Had brake issues, when applying Brake, pedal would go down to the floor and then pressure would build as pedal was pumped. Shop diagnosed as rear shoes being worn, they were replaced and now the pedal isn't intermittent anymore but still soft but the biggest concern for me is that, in my opinion, the pedal travels way too far down prior to getting apprapropriate braking. When I was putting shoes on I hit a dust seal on the rear brake Cyl. And fluid came from the rear cylinder.I put the seal back on right away and don't see any leaks, seems fine.I have topped up fluid now and still the same issues so 2 questions.1) how far should the pedal be travelling and 2) where do I go from here to check?