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Mervon Company has two operating departments: Mixing and Bottling. Mixing has 400 employees and Bottling has 400 employees. Indirect factory costs include administrative costs of
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 400 employees and Bottling has 400 employees. Indirect factory costs include administrative costs of $210,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department. Department Employees % of Total Admin. Exp. to Allocate Allocated Amount % Mixing Bottling Total %
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