A company has two departments, Y and Z that incur wage expenses. An analysis of the...
A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $34,000 indicates that Dept. Y had a direct wage expense of $5,000 and Dept. Z had a direct wage expense of $8,000. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
$15,500; $18,500.
$18,500; $15,500.
$17,000; $17,000.
$5,000; $8,000.
$10,500; $10,500.
Homework Answers
Indirect wages = 34,000 - (5000+8000) = 21,000
Departmental wages for dept Y
= 5000 + (21,000/2)
= 15,500
Departmental wages for dept Z
= 8000 + (21,000/2)
= 18,500
Option A
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