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

question 37

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 total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:

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

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