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soldier1979 [14.2K]
3 years ago
8

A company has two departments, A and B, that incur delivery expense. An analysis of the total delivery expense of $9,000 indicat

es that Dept. A had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. B. The analysis also indicates that 60% of regular delivery requests originate in Dept. A and 40% in Dept. B. The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:
Business
1 answer:
DENIUS [597]3 years ago
6 0

Answer:

$5,800; $3,200

Explanation:

Calculation to determine The delivery expenses that should be charged to Dept. A and Dept.

Dept. A and Dept. B

Direct expenses $1,000 $0

Indirect expenses $4,800 $3,200

[$60%*($9,000-$1,000)=$4,800]

[$40%*($9,000-$1,000)=$3,200]

TOTAL $5,800 $3,200

Therefore The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:$5,800 $3,200

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