Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year: Dept. Sales 1 2 3 $1,100,000 430,000 710,000 Cost of goods sold $735,000 156,500 305,000 Direct expenses Group of answer choices Dept. 3; $430,000 Dept. 1; $255,000 Dept. 2; $110,000 Dept. 3; $240,000 Dept. 2; $156,500 Indirect expenses $85,000 105,000 $110,000 40,200 165,000 21,000 Which department has the greatest departmental contribution to overhead and what is the amount contributed?

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
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Mach Co. operates three manufacturing departments as profit centers. The
following information is available for its most recent year:
Dept. Sales
1
2
3
$1,100,000
430,000
710,000
Cost of
goods sold
$735,000
156,500
305,000
Direct
expenses
Indirect
expenses
$110,000
$85,000
40,200
105,000
165,000 21,000
Which department has the greatest departmental contribution to overhead and
what is the amount contributed?
Group of answer choices
Dept. 3; $430,000
Dept. 1; $255,000
Dept. 2; $110,000
Dept. 3; $240,000
Dept. 2; $156,500
Transcribed Image Text:Mach Co. operates three manufacturing departments as profit centers. The following information is available for its most recent year: Dept. Sales 1 2 3 $1,100,000 430,000 710,000 Cost of goods sold $735,000 156,500 305,000 Direct expenses Indirect expenses $110,000 $85,000 40,200 105,000 165,000 21,000 Which department has the greatest departmental contribution to overhead and what is the amount contributed? Group of answer choices Dept. 3; $430,000 Dept. 1; $255,000 Dept. 2; $110,000 Dept. 3; $240,000 Dept. 2; $156,500
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