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

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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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