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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 140 employees and occupies 60,000 square feet; Painting has 60 employees and occupies 40,000 square feet.
Indirect factory expenses for the current period are as follows:
Administration $90,000
Maintenance $111,000
Question 1: 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:
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