Reference: 22_06
Mach Co -Which Department Has the Greatest Departmental Contribution to Overhead and Centers

Multiple Choice

Reference: 22_06
Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year:
$\begin{array}{ccccc}&&\text {Cost of}&\text {Direct}&\text {Indirect}\\\text { Dept. } &\text { Sales } &\text { Goods Sold } & \text { Expenses }&\text { Expenses }\\1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \\2 & 400,000 & 150,000 & 40,000 & 100,000 \\3 & 700,000 & 300,000 & 150,000 & 20,000\end{array}$

-Which department has the greatest departmental contribution to overhead and what is the amount contributed?

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