A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $43,000 indicates that Dept. Y had a direct wage expense of $6,800 and Dept. Z had a direct wage expense of $10,700. 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:

$19,550 and $10,250

Explanation:

Calculation to determine what Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:

First step is to calculate the Indirect wages

Indirect wages = [43,000 - (6800+10700)]/2

Indirect wages= 43,000-17500/2

Indirect wages=24,500/2

Indirect wages = 12,750

Now let calculate Departmental wage expenses for Dept. Y and Dept. Z,

Departmental wage expenses for Dept. Y

=6800 + 12,750

Departmental wage expenses for Dept. Y = $19,550

Departmental wage expenses for Dept. Z=10,700 + 12,750

Departmental wage expenses for Dept. Z= 23450

Therefore Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:$19,550 and $10,250

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