eady Company has two operating (production) departments: Assembly and Painting.

Question

eady Company has two operating (production) departments: Assembly and Painting. Assembly has 250 employees and occupies 54,000 square feet; Painting has 200 employees and occupies 26,000 square feet. Indirect factory expenses for the current period are as follows: Administration $90,000 Maintenance $119,000 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 Assembly Department for the current period is (Do not round your intermediate calculations and round your final answer to the nearest whole dollar amount): $50,000. $130,325. $80,325. $129,000. $131,325.

Explanation / Answer

The  correct answer is $ 130,325

Note :

1. Total Activity :

2.

Activity Rate :

3.

Allocated Cost :

Administration = $ 200 * 250 Employees

= $ 50,000

Add: Maintenance = $ 1.4875 * 54,000 square feet

= $ 80,325

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.