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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
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. The company has indirect expenses that consist of administrative expenses of $80,000 and maintenance expenses of $100,000. 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 $48,000. $55,000. $77,000. $103,000. $110,000. Based on predicted production of 24,000 units, a company anticipates $444,000 of fixed costs and $390,000 of variable costs. The flexible budget amounts of fixed and variable costs for 22,000 units are (Do not round intermediate calculations): Multiple Choice $444,000 fixed and $390,000 variable. $407,000 fixed and $390,000 variable. $444,000 fixed and $357,500 variable. $407,000 fixed and $357,500 variable. $357,500 fixed and $444,000 variable. Fletcher Company collected the following data regarding production of one of its products. Compute the standard quantity allowed for the actual output. Direct materials standard (8 pounds @ $3/pound) Actual direct materials used Actual finished units produced Actual cost of direct materials used $ 24 per finished 274,000 pounds 34,000 units $ 819,000 Multiple Choice 274,000 pounds. 272,000 pounds. 34,000 pounds. 816,000 pounds. 102,000 pounds
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