During 2016, Acme Company's total overhead of $685,000 was allocated as follows: 18% to division A, 42% to division B, and the remainder to division C. What is the ratio of the overhead in division A to the overhead in division B to the overhead in division C in the lowest terms?

Question

Quizplus · Accepted Answer

The overhead allocated to Division A is 18% of $685,000, to Division B is 42%, and to Division C is the remainder, which is 100% - 18% - 42% = 40%. The ratio of their overheads is therefore 18:42:40. Simplifying this ratio by dividing each term by their greatest common divisor, 6, gives 3:7:6. However, the correct simplification of 18:42:40 is actually 9:21:20, indicating a mistake in my initial explanation regarding the simplification process. The correct simplification should directly reduce the original ratio by dividing each term by their greatest common divisor, 2, leading to the correct answer of 9:21:20.

During 2016, Acme Company's Total Overhead of $685,000 Was Allocated 1:2.3‾:2.2‾1: 2 . \overline{3}: 2 . \overline{2}1:2.3:2.2

During 2016, Acme Company's Total Overhead of $685,000 Was Allocated $1: 2 . \overline{3}: 2 . \overline{2}$