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

question 57

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

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Definitions:

Event A

A specified occurrence within a set framework, often observed within statistical and probability studies.

Event B

A specific outcome or a set of outcomes of a random experiment.

Balanced Die

A die that is perfectly symmetrical in shape and mass distribution, ensuring that each face has an equal chance of landing up when thrown.

Even Number

An Even Number is an integer that can be divided exactly by 2, without leaving a remainder.