24] Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 438 employees and occupies 68,000 square feet; Painting has 340 employees and occupies 50,400 square feet. Indirect factory expenses for the current period are as follows:
|
Administration
|
$118,400
|
|
Maintenance
|
$148,000
|
Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of administration expense that should be allocated to the Assembly Department for the current period is:
$66,657.
$85,000.
$151,000.
$158,000.