During 1999, 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% of $685,000, and the remainder to division C is 100% - 18% - 42% = 40% of $685,000. The ratio of their overheads is 18:42:40. Simplifying this ratio by dividing each term by their greatest common divisor, 2, gives 9:21:20.

During 1999, Acme Company's Total Overhead of $685,000 Was Allocated