Ultimo Co Operates Three Production Departments as Profit Centers A) $260,000

question 64

Multiple Choice

Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 2's contribution to overhead in dollars is: $\begin{array}{ccccc}\text{Dept.}&\text {Sales}&\text {Cost of Goods Sold}&\text {Direct Expenses}&\text {Indirect Expenses}\\1&\$ 1,000,000 &\$ 700,000 & \$ 100,000 &\$80,000 \\2 & 400,000 & 150,000 & 40,000 & 100,000 \\ 3 & 700,000 & 300,000 & 150,000 & 20,000 \\\end{array}$

• A) $260,000.
• B) $350,000.
• C) $210,000.
• D) $10,000.
• E) $150,000.

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