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

question 190

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 maintenance expenses that should be allocated to the Painting Department for the current period is:

• A) $110,000.
• B) $ 48,000.
• C) $103,000.
• D) $45,000.
• E) $ 55,000.

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Definitions:

Regression Line

A straight line in a scatter plot that best fits the data points and shows the relationship between two variables in linear regression analysis.

P-value

The probability of achieving outcomes in a test that are equally or more extreme than the actual observed ones, given the null hypothesis is assumed to be correct.

Null Hypothesis

The hypothesis that there is no significant difference or effect, typically the initial assumption to be tested in statistical hypothesis testing.

Alternative Hypothesis

The alternative hypothesis is a statement used in statistical testing that proposes a relationship between variables or indicates a difference, contrasting with the null hypothesis.