112/140 mete Ready Company has two operating production departments: Assembly an

Question

112/140 mete 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 Maintenance $ 80,000 $100,000 Administration is located based on workers in each department, maintenance is allocated based on square footage. The total amount of indirect foctory expenses that should be allocated to the Assembly Department for the current period is (Do not round your intermediate calculations) $48.000 O 5103.000 2 O 400 DOO Loe here to search

Explanation / Answer

Determination of indirect factory expenses allocated to Assembly department:

Administration ($80,000 x 150 /250) $48,000 Maintenance ($100,000 x 44,000 / 80,000) $55,000 Total Factory expenses allocated to Assembly department $103,000

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