QS 24-6 Allocating costs to departments LO P2

Mervon Company has two operating departments: mixing and bottling. Mixing has 455 employees and Bottling has 195 employees. Indirect factory costs include administrative costs of $206,000. 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	0	0.00%		$0