Question:
Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year:
Dept. Sales. Cost of Goods Sold. Direct Expenses. Indirect Expenses
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
Which department has the greatest departmental contribution to overhead and what is the amount contributed?
Dept. 3; $400,000
Dept. 1; $1,000,000
Dept. 2; $100,000
Dept. 3; $250,000
Dept. 2; $150,000