Mervon Company has two operating departments: Mixing and Bottling. Mixing has 300 employees and occupies 22,000 square

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Mervon Company has two operating departments: Mixing and Bottling. Mixing has 300 employees and occupies 22,000 square feet. Bottling has 200 employees and occupies 18,000 square feet. Indirect factory costs for the current period follow: Administrative, $160,000; and Maintenance, $200,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative cost allocated to each operating department.


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Managerial Accounting

ISBN: 978-0073379586

2010 Edition

Authors: John J. Wild, Ken W. Shaw

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