QS 24-7 Allocating costs to departments LO P2 Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,320 square feet. Bottling occupies 19,080 square feet. Indirect factory costs include maintenance costs of $216,000. 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 QS 24-19C Joint cost allocation LO C3 A company purchases a 11,760-square-foot commercial building for $385,000 and spends an additional $90,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 3,360 square feet, will be rented for $1.50 per square foot. Unit B contains 8,400 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Joint Cost Percent of Market Value Value Apportioned Cost Numerator Denominator % of Mkt Value Unit A Unit B Totals