Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Select one:

a. Dept. A - $5,500; Dept. B - $3,500.

b. Dept. A - $5,500; Dept. B - $4,500.

c. Dept. A - $5,800; Dept. B - $3,200.

d. Dept. A - $5,400; Dept. B - $3,600.

e. Dept. A - $4,500; Dept. B - $4,500.

Step by Step Solution

3.39 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

A A Dept B Direct delivery expence 1000 Allo... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

More Books

Students also viewed these Accounting questions