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 total amount of administration expense that should be allocated to the Assembly Department for the current period is:
A)$48,000.
B)$55,000.
C)$103,000.
D)$104,000.
E)$110,000.

Question

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 total amount of administration expense that should be allocated to the Assembly Department for the current period is:
A)$48,000. 
B)$55,000. 
C)$103,000. 
D)$104,000. 
E)$110,000.

Quizplus · Accepted Answer

The Answer of 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 total amount of administration expense that should be allocated to the Assembly Department for the current period is:
A)$48,000. 
B)$55,000. 
C)$103,000. 
D)$104,000. 
E)$110,000.

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