chapter 22 question 3

QS 22-6 Allocating costs to departments LO P2 Mervon Company has two operating departments: Mixing and Bottling. Mixing occupies 26,820 square feet. Bottling occupies 17,880 square feet. Indirect factory costs include maintenance costs of $224,000. If maintenance costs are allocated to operating departments based on square footage occupied, determine the amount of maintenance costs allocated to each operating department. Department Sq. Feet % of Total Maint. Exp. to Allocate Allocated Amount % Mixing Bottling Total % %