Mervon company has two operating departments: mixing and bottling. mixing has 350 employees and bottling has 350 employees. indirect factory costs include administrative costs of $162,000. administrative costs are allocated to operating departments based on the number of workers. determine the administrative costs allocated to each operating department.

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling =

So allocated amount for bottling = 0.5×$162000 = $81000

lives by a moral and ethical code

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