Ask Question
15 March, 02:24

A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $25,000 indicates that Dept. Y had a direct wage expense of $3,200 and Dept. Z had a direct wage expense of $5,300. 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:

+1
Answers (1)
  1. 15 March, 02:50
    0
    Dept. Y wages expense = $11,450

    Dept. X wages expense = $13,550

    Explanation:

    Given:

    Total wage expense = $25,000

    Dept. Y direct wage expense = $3,200

    Dept. Z direct wage expense = $5,300

    Dept allocation ratio = 1:1

    Computation:

    Indirect wages = Total wage expense - Dept. Y direct wage expense - Dept. Z direct wage expense

    Indirect wages = $25,000 - $3,200 - $5,300

    Indirect wages = $16,500

    Dept. Y part in Indirect wages = 1/2[$16,500] = $8,250

    Dept. X part in Indirect wages = 1/2[$16,500] = $8,250

    Dept. Y wages expense = $3,200 + $8,250

    Dept. Y wages expense = $11,450

    Dept. X wages expense = $5,300 + $8,250

    Dept. X wages expense = $13,550
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $25,000 indicates that Dept. Y ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers