Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and...
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Accounting
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 50,000 square feet; Painting has 160 employees and occupies 30,000 square feet. The company has indirect expenses that consist of administrative expenses of $86,000 and maintenance expenses of $115,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The total amount of indirect expenses that should be allocated to the Assembly Department for the current period is:
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