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 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:
A. $55,000.
B. $110,000.
C. $48,000.
D. $45,000.
E. $103,000.
Answer: D
You might also like to view...
A data collection method that can easily and inexpensively screen respondents is desirable with a low incidence rate situation because a great many potential respondents must be contacted, but a large percentage of these would not qualify to take the
survey. Indicate whether the statement is true or false
Operating budgets are plans used in daily operations
Indicate whether the statement is true or false
The overall project risk factor is known to be 0.5. The probability of dependency failure is twice the probability of complexity failure and four times the probability of maturity failure
The consequence of performance failure is twice the consequence of reliability failure, four times the consequence of schedule failure and eight times the consequence of cost failure. What is the difference between the probability of maturity failure and the consequence of cost failure? Maturity X Cost Y Complexity 2X Schedule 2Y Dependency 4X Reliability 4Y Performance 8Y A) 0.026 B) 0.033 C) 0.041 D) 0.048
The materiality constraint:
A. Prescribes that a company record the expenses it incurred to generate the revenue reported. B. Prescribes that only information that would influence the decisions of a reasonable person need be disclosed. C. Provides guidance on when a company must recognize revenue. D. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. E. Prescribes that accounting information is based on actual cost.