A company has two departments, Y and Z that incur delivery expenses. An analysis

Question

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $18,000 indicates that Dept. Y had a direct expense of $1,900 for deliveries and Dept. Z had no direct expense. The indirect expenses are $16,100. The analysis also indicates that 45% of regular delivery requests originate in Dept. Y and 55% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: $9,145; $8,855. $8,005: $11,700. $8,005; $9,710. $8,100; $9,900. $6,300; $11,700.

Explanation / Answer

Dept Y's Delivery expense= Direct Delivery expense+Portion of Indirect Delivery expense

= 1900+(16100*45%)

=9145

Dept Z'w Delivery expense= Direct Delivery expense+Portion of Indirect Delivery expense

= 0+16100*55%

=8855

So the Delivery expense of Dept Y and Dept. Z is $9145 and $8855

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