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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 360 employees and occupies 72,000 square feet; Painting has 90 employees and occupies
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 360 employees and occupies 72,000 square feet; Painting has 90 employees and occupies 48,000 square feet. Indirect factory expenses for the current period are as follows:
Administration | $100,000 |
Maintenance | $126,000 |
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 Assembly Department for the current period is:
A. $75,600
B. $151,200
C. $80,000
D. $157,000
E. $155,600
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