Mervon Company has two operating departments: mixing and bottling. Mixing occupies 26,640 square feet. Bottling occupies 17,760 square feet. Indirect factory costs include maintenance costs of $210,000. 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 Mixing Bottling Total Sq. Feet % of Total Maint. Exp. to Allocate Allocated Amount

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mervon Company has two operating departments: mixing and bottling. Mixing occupies 26,640 square feet.
Bottling occupies 17,760 square feet. Indirect factory costs include maintenance costs of $210,000. 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
Mixing
Bottling
Total
Sq. Feet
% of
Total
Maint. Exp. to
Allocate
Allocated
Amount
Transcribed Image Text:Mervon Company has two operating departments: mixing and bottling. Mixing occupies 26,640 square feet. Bottling occupies 17,760 square feet. Indirect factory costs include maintenance costs of $210,000. 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 Mixing Bottling Total Sq. Feet % of Total Maint. Exp. to Allocate Allocated Amount
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