Ready company has two operating (production) departments: assembly and painting. assembly has 360 employees and occupies 72,000 square feet; painting has 90 employees and occupies 48,000 square feet. indirect factory expenses for the current period are as follows: administration $ 100,000 maintenance $ 126,000 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:

Respuesta :

W0lf93
There are a total of 450 workers in the company if the adminstartion costs are divided equally for each of the worker then each worker needs an allocation of $222.22 ($100,000/450 workers). Multiply $222.22 by 360 workers equaling to a total of $79,999.20 for the assembly department. Probably just round up to $80,000.