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

Question 1

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: 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 amount of administration expenses that should be allocated to the Painting Department for the current period is: A)  $ 48,000. B)  $ 55,000. C)  $103,000. D)  $ 32,000. E)  $110,000. 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 Painting Department for the current period is:


A) $ 48,000.
B) $ 55,000.
C) $103,000.
D) $ 32,000.
E) $110,000.

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