Question
6. Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and
6. Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows:
Administration | $60,000 |
Maintenance | $100,000 |
Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of administration expense that should be allocated to the Assembly Department for the current period is: (You must show your work for credit).
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