Ready Company Has Two Operating (Production)departments: Assembly and Painting

question 132

Multiple Choice

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 36,000 square feet.Indirect factory expenses for the current period are as follows:
Administration is allocated based on workers in each department; maintenance is allocated based on square footage.
-The total amount of indirect factory expenses that should be allocated to the Painting Department for the current period is:

• A)$48,000.
• B)$55,000.
• C)$77,000.
• D)$103,000.
• E)$110,000.

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Definitions:

Private Funds

Financial resources raised from non-governmental sources, used for investment or other private enterprise.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Surplus Goods

Items in excess of what is needed, often resulting in stockpiles or discounted sales.

Transportation Costs

are expenses involved in moving goods or people from one location to another, including fuel, labor, and maintenance of vehicles.