Question
A Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 68,400 square feet; Painting has 90 employees and occupies
A Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 68,400 square feet; Painting has 90 employees and occupies 45,600 square feet. The company has indirect expenses that consist of administrative expenses of $97,000 and maintenance expenses of $117,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The amount of administration expenses that should be allocated to the Painting Department for the current period is:
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