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TB MC Qu. 22-106 (Algo) Ready Company has two operating... Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and

TB MC Qu. 22-106 (Algo) Ready Company has two operating...

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 56,400 square feet; Painting has 140 employees and occupies 37,600 square feet. The company has indirect expenses that consist of administrative expenses of $87,000 and maintenance expenses of $105,000. 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 Painting Department for the current period is:

Multiple Choice

  • $52,200.

  • $63,000.

  • $115,200.

  • $42,000.

  • $126,000.

TB MC Qu. 22-111 (Algo) Braun Company has one service...

Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period:

Department Direct Expenses Square Feet
Maintenance $ 27,000 6,000
Milling 77,500 12,000
Assembly 106,400 18,000

The total cost of operating the Assembly Department for the current period is:

Multiple Choice

  • $122,600.

  • $133,400.

  • $93,700.

  • $116,600.

  • $106,400.

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