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Question
Mach Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead and what is the amount contributed?
Cost of Direct Indirect
Dept. Sales Goods Sold Expenses Expenses
 1 |
$1,000,000 | $700,000 | $100,000 | $ 80,000 |
| 2 | 400,000 | 150,000 | 40,000 | 100,000 |
| 3 | 700,000 | 300,000 | 150,000 | 20,000 |
A. Dept. 3; $ 400,000.
B. Dept. 1; $1,000,000.
C. Dept. 2; $ 100,000.
D. Dept. 3; $ 250,000.
E. Dept. 2; $ 150,000.
Answer
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