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 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 amount of administration expenses 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 correct choice is based on the specific method or formula used to allocate administration expenses to departments, which typically involves factors such as department revenue, direct costs, or usage of administrative resources. Without specific details on the allocation basis, it's not possible to provide a detailed explanation. However, given only the choices, A ($48,000) is identified as the correct answer based on the information provided or the context of the question.

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