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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $15,000 indicates that Dept. Y

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $15,000 indicates that Dept. Y had a direct expense of $1,600 for deliveries and Dept. Z had no direct expense. The indirect expenses are $13,400. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

Multiple Choice

  • $7,500; $7,340.

  • $6,000; $9,000.

  • $7,500; $9,000.

  • $7,500; $7,500.

  • $8,300; $6,700.

    A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $41,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.)

    Department S $ 101,000
    Department T 212,750
    Department U 157,750
    Total $ 471,500

    Multiple Choice

  • $18,500.

  • $13,100.

  • $10,100.

  • $41,000.

  • $15,767.

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