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

question 32

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 $ 80,000
Maintenance $ 100,000
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Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of administration expenses that should be allocated to the Assembly Department for the current period is:

• A) $104,000.
• B) $103,000.
• C) $ 55,000.
• D) $110,000.
• E) $ 48,000.

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Definitions:

Early Days

A term referring to the initial period of existence or operation of an entity, often characterized by simplicity, experimentation, and establishment of foundational principles.

Colonization

The process by which a central power dominates the surrounding land and its indigenous people, often involving the establishment of foreign control over territories for economic or strategic benefits.

South Carolina

A state in the southeastern region of the United States, known for its shoreline of subtropical beaches and marshlike sea islands, as well as its rich history in the American Civil War.

Colony Formation

The process by which countries establish settlements in distant territories under their control, often for economic gain, strategic advantage, or to spread their cultural or religious beliefs.