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kirill115 [55]
3 years ago
5

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies 55,200

square feet; Painting has 120 employees and occupies 36,800 square feet. Indirect factory expenses for the current period are as follows: Administration $ 86,000 Maintenance $ 102,000 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:
Business
1 answer:
Agata [3.3K]3 years ago
7 0

Answer:

$61,200

Explanation:

Maintenance expenses allocated to assembly department

Allocation base = Square footage

= $102,000 * $55,200 / ($55,200 + $36,800)

= $102,000 * $55,200 / $92,000

= $61,200

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