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:
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: 
A) 8%. 
B) 40%. 
C) 20%. 
D) 30%. 
E) 12%.

Quizplus · Accepted Answer

The question provides information about only one department. The contribution to overhead as a percentage of sales for Department 1 is 20%. There is no information provided about the contribution to overhead as a percentage of sales for the other two departments, so we cannot calculate the total contribution to overhead. Therefore, the answer is (C) 20%.

Mach Co Operates Three Production Departments as Profit Centers