Ultimo Co Operates Three Production Departments as Profit Centers A) Dept 3; $400,000

question 61

Multiple Choice

Ultimo 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 (in dollars) and what is the amount contributed? $\begin{array}{rrrrr}&&&&\text { Indirect }\\\text { Dept.} &\text {Sales } & \text { Cost of Goods Sold}&\text { Direct Expenses}&\text { Expenses }\\1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \\2 & 400,000 & 150,000& 40,000 & 100,000 \\3 & 700,000 & 300,000 & 150,000 & 20,000\end{array}$

• 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.

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