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
$$\begin{array} { r r r r r }
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)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.

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
$$\begin{array} { r r r r r } 
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)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.

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.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
$$\begin{array} { r r r r r } 
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$$
A)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.

Mach CoOperates Three Production Departments as Profit Centers A)Dept3; $ 400,000