A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $27,000 indicates that Dept. Y had a direct wage expense of $3,600 and Dept. Z had a direct wage expense of $5,900. 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. $12,350; $14,650 b. $14,650; $12,350 c. $13,500; $13,500 d. $3,600; $5,900 e. $8,750; $8,750

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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A company has two departments, Y and Z that incur wage expenses. An
analysis of the total wage expense of $27,000 indicates that Dept. Y had a
direct wage expense of $3,600 and Dept. Z had a direct wage expense of
$5,900. 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. $12,350; $14,650
b. $14,650; $12,350
c. $13,500; $13,500
d. $3,600; $5,900
e. $8,750; $8,750
Transcribed Image Text:A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $27,000 indicates that Dept. Y had a direct wage expense of $3,600 and Dept. Z had a direct wage expense of $5,900. 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. $12,350; $14,650 b. $14,650; $12,350 c. $13,500; $13,500 d. $3,600; $5,900 e. $8,750; $8,750
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