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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 360 employees and occupies 72,000 square feet; Painting has 90 employees and occupies 48,000 square feet. The company has indirect expenses that consist of administrative expenses of $100,000 and maintenance expenses of $126,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The total amount of indirect expenses that should be allocated to the Painting Department for the current period is:

Multiple Choice

• $80,000.

• $75,600.

• $70,400.

• $155,600.

• $140,800.