Acompany has two departments, y and z that incur wage expenses. an analysis of the total wage expense of $19,000 indicates that dept. y had a direct wage expense of $2,000 and dept. z had a direct wage expense of $3,500. 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:

Departmental wage expenses for Dept. Y = 8,750 and Dept. Z = 10,250.

Explanation:

Direct wages of Y and Z sum 2,000 + 3,500 = 5,500. The remaining expenses are the difference between total wage expense and direct wage expenses. That means indirect expenses are 19,000 - 5,500 = 13,500. These has to be allocated half for each department.

Dept Y expense is 2,000 + 13,500/2 = 2,000 + 6,750 = 8,750Dept Z expense is 3,500 + 13,500/2 = 3,500 + 6,750 = 10,250

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