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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 200 employees and occupies 50,400 square feet; Painting has 50 employees and occupies
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 200 employees and occupies 50,400 square feet; Painting has 50 employees and occupies 33,600 square feet. The company has indirect expenses that consist of administrative expenses of $82,000 and maintenance expenses of $102,000. Administrative expenses are allocated based on the number of workers in each department and 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 $65,600. $61,200. $126,800. $128,840. $122,400
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