Question

A soda manufacturer has two operating departments: mixing and bottling. mixing has 600 employees and bottling has 400 employees. office costs of $320,000 are allocated to operating departments based on the number of employees. the office costs allocated to the bottling department are:

Answer 1

Cost allocation is a technique of allocating the organization's costs among the various cost centers of the organization. Thus, the office costs allocated to the Bottling department are equal to $128,000.

What are allocation costs?

Cost allocation is a technique of supplying relief to shared carrier organization's cost facilities that offer a product or provider. In turn, the related cost is assigned to internal clients' price centers that devour the goods and services.

As per the given information,

Total office costs: $320,000

We have given total number of employees for mixing = 600

And total number of employees for bottling = 400

office costs = $320,000

So total number of employees is equal to 600 plus 400 is 1000 employees.

$\rm\,Allocation \,Base\, For\, Mixing: \frac{600}{1,000} = 0.6 \\\\So allocated amount for mixing is 0.6 \times \ 320,000 = \ 192,000\\\\Allocation \,Base\, for\, Bottling\, = \dfrac{400}{1,000} = 0.4\\\\So allocated amount for bottling = 0.4 \times \ 320,000= \ 128,000$

Thus, the office costs allocated to the Bottling department is equal to $128,000.

Learn more about allocation costs here:

brainly.com/question/26656438

#SPJ1