A company has two departments, A and B, that incur the delivery expenses. An analysis of the
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Question:
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.
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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