Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 37

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. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.