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A company has two departments, A and B, which incur delivery expenses. An analysis of the total delivery expense of $9000 indicates that Dept. A
A company has two departments, A and B, which incur delivery expenses. An analysis of the total delivery expense of $9000 indicates that Dept. A had a direct expense of $1000 for deliveries. None of the $9000 is a direct expense to Dept. B NOTE: the implication is that $8000 of the delivery expense is an indirect (and thus allocated) cost to both departments. 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
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