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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 270 employees and occupies 70,800 square feet; Painting has 180 employees and occupies
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 270 employees and occupies 70,800 square feet; Painting has 180 employees and occupies 47,200 square feet. Indirect factory expenses for the current period are as follows:
Administration | $ | 99,000 | |
Maintenance | $ | 126,000 | |
Administration is allocated based on workers in each department; 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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