Reference: 22_06
Mach Co -Department 1's Contribution to Overhead as a Percent of Sales

question 140

Multiple Choice

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

-Department 1's contribution to overhead as a percent of sales is:

• A) 8%
• B) 40%
• C) 20%
• D) 30%
• E) 12%

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Definitions:

Nutrient Absorption

The process by which substances such as vitamins, minerals, and other food components are taken up and assimilated into the body, typically occurring in the intestines.

Hypha

One of the threadlike filaments composing the mycelium of a water mold or fungus.

Fruiting Body

The spore-producing structure of fungi and other plants which is usually seen above ground.

Gametangium

A specialized organ or cell in which gametes are formed in algae, fungi, and plants.