Ready Company Has Two Operating (Production) Departments: Assembly and Painting $\begin{array}{ll}\text { Administration } & \$ 80,000 \\\text { Maintenance } & \$ 100,000\end{array}$

question 25

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: $\begin{array}{ll}\text { Administration } & \$ 80,000 \\\text { Maintenance } & \$ 100,000\end{array}$ 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) $48,000.
• B) $55,000.
• C) $103,000.
• D) $45,000.
• E) $110,000.

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