A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2021-03-15T01:38:59+01:00

Answer:

$8,850;$7,150

Explanation:

Calculation for Departmental delivery expenses for Dept. Y

Using this formula

Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage

Let plug in the formula

Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%

Departmental delivery expenses Dept. Y= $1,700 + $7,150

Departmental delivery expenses Dept. Y= $8,850

Calculation for Departmental delivery expenses for Dept. Z,

Using this formula

Departmental delivery expenses for Dept. Z= Indirect expense × given percentage

Departmental delivery expenses for Dept. Z= $14,300 × 50%

Departmental delivery expenses for Dept. Z= $7,150

Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150