Question

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Y had a direct expense of $1,000 for deliveries and Dept. Z had no direct expense. The indirect expenses are $8,000. The analysis also indicates that 40% of regular delivery requests originate in Dept. Y and 60% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

Answer 1

Answer:

$4,200 and $4,800

Explanation:

The computation of the Departmental delivery expenses are shown below:

For Dept. Y

= Direct expense + indirect expense × given percentage

= $1,000 + $8,000 × 40%

= $1,000 + $3,200

= $4,200

For Dept Z

= Indirect expense × given percentage

= $8,000 × 60%

= $4,800

Simply we multiplied the expenses with the percentage given