Mervon Company has two operating departments: mixing and bottling. Mixing has 480 employees and Bottling...

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Accounting

Mervon Company has two operating departments: mixing and bottling. Mixing has 480 employees and Bottling has 320 employees. Indirect factory costs include administrative costs of $188,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.

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Admin. Exp. to Allocate Allocated Amount Department Employees Mixing 480 Bottling 320 Total 800 % of Total 60.00% 40.00% 100.00%

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