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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
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. If the maintenance costs are allocated to operating departments based on square footage, determine the amount of maintenance costs allocated to each operating department.
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