Question
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies 66,000 square feet; Painting has 120 employees and occupies
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies 66,000 square feet; Painting has 120 employees and occupies 44,000 square feet. Indirect factory expenses for the current period are as follows: Administration $ 95,000 Maintenance $ 120,000 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: Multiple Choice $66,500. $72,000. $138,500. $139,500. $144,000.
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