Question

A company has two departments. Y and Z that incur wage expenses. An analysis of the total wage expense of $25,000 indicates that Dept. Y had a direct wage expense of $3.200 and Dept. Z had a direct wage expense of $5,300. The remaining expenses are Indirect and analysis indicates they should be allocated evenly between the two departments Departmental wage expenses for Dept. Yand Dept. Z respectively, are: M e Choice Ο Ο SH 150 Ssso Ο 5.50 51 450 Ο Ο 5000 5000 Ο 58200, 35300 Ο 48 250 49 50

Answer 1

1)Option A is the Answer

	Dept Y	Dept Z
Direct	3,200.00	5,300.00
Indirect	8,250.00	8,250.00
Total	11,450.00	13,550.00

2) Product L = 2,800/5,000 x 792

=277

3)Department T = 215,350/495,600 x 42,000 = 18,250

4)Grinding = 1,800/3,000 x 42,000 = 25,200

5)Depreciation Drilling =121,600/320,000 x 29,000

=11,020