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Mervon Company has two operating departments: mixing and bottling. Mixing has 480 employees and Bottling has 320 employees. Indirect factory costs include administrative costs of $188,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.

Admin. Exp. to Allocate Allocated Amount Department Employees Mixing 480 Bottling 320 Total 800 % of Total 60.00% 40.00% 100.

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Admin ExpAllocated to Allocate Amount Department Sales % of Total 60.0% 188000 1 480 112800 40.0% 75200 2 320 188000 Total 80

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