A company has two departments,Y and Z that incur wage expenses.An analysis of the total wage expense of $19,000 indicates that Dept.Y had a direct wage expense of $2,000 and Dept.Z had a direct wage expense of $3,500.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:
A)$8,750;$10,250.
B)$10,250;$8,750.
C)$9,500;$9,500.
D)$2,000;$3,500.
E)$6,750;$6,750.

Question

Quizplus · Accepted Answer

The total indirect wage expense is $19,000 - ($2,000 + $3,500) = $13,500. Allocating this evenly between the two departments gives $6,750 each. Therefore, Dept. Y's total wage expense is $2,000 + $6,750 = $8,750, and Dept. Z's total wage expense is $3,500 + $6,750 = $10,250.

A Company Has Two Departments,Y and Z That Incur Wage