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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
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 30,000 square feet. Indirect factory expenses for the current period are as follows: Administration $ 80,000 Maintenance $100,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Painting Department for the current period is: Multiple Choice $48,000. $55,000. $103,000. $45,000 $110,000.
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