The amount of administration expenses that should be allocated to the Assembly Department for the current period is:
The amount of administration expenses that should be allocated to the Assembly Department for the current period is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 63,600 square feet; Painting has 90 employees and occupies 42,400 square feet. The company has indirect expenses that consist of administrative expenses of $93,000 and maintenance expenses of $117,000. Administrative expenses are allocated based on the number of workers in each department and 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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