Mach Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:
Cost of Direct Indirect
Dept.Sales Goods Sold Expenses Expenses
$$\begin{array} { r r r r r }
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)8%.
B)40%.
C)20%.
D)30%.
E)12%.

Question

Mach Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:
Cost of Direct Indirect
Dept.Sales Goods Sold Expenses Expenses
$$\begin{array} { r r r r r } 
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)8%.
B)40%.
C)20%.
D)30%.
E)12%.

Quizplus · Accepted Answer

The Answer of Mach Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:
Cost of Direct Indirect
Dept.Sales Goods Sold Expenses Expenses
$$\begin{array} { r r r r r } 
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)8%.
B)40%.
C)20%.
D)30%.
E)12%.

Mach CoOperates Three Production Departments as Profit Centers A)8% B)40

Mach CoOperates Three Production Departments as Profit Centers A)8%
B)40