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

Question

29.

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 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

A. $5,500; $4,500.

B. $5,500; $3,500.

C. $5,400; $3,600.

D. $4,500; $4,500.

E. $5,800; $3,200.

PLEASE ADD EXPLANATION

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 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

Explanation / Answer

Calculate depatmental delivery expenses :

Department Y = (8000*60%+1000) = $5800

Department Z = (8000*40%) = $3200

so answer is e) $5800;$3200

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