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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 200 employees and occupies 61,200 square feet; Painting has 50 employees and occupies 40,800 square feet.
Indirect factory expenses for the current period are as follows:
Administration$91,000
Maintenance$111,000
Problem 1: Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Painting Department for the current period is:
Multiple Choice
Option 1: $72,800.Option 2: $66,600.Option 3: $62,600.Option 4: $139,400.Option 5: $125,200.
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