Ready Company Has Two Operating (Production) Departments: Assembly and Painting

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 $ 80,000
Maintenance $ 100,000
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Administration is allocated based on workers in each department; 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:

A) $104,000.
B) $103,000.
C) $ 55,000.
D) $110,000.
E) $ 48,000.

Correct Answer:

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