QS 24-7 Allocating costs to departments LO P2

Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,650 square feet. Bottling occupies 19,350 square feet. Indirect factory costs include maintenance costs of $238,000. If the 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