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.
<h3>What are allocation costs?</h3>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.
Thus, the office costs allocated to the Bottling department is equal to $128,000.
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