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:

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting trade and economics globally.

Transactions

The action of conducting business or trading between parties, typically involving the exchange of goods, services, money, or information.

International Exchange

The trading of goods, services, and currencies among countries.

Current Account

A country's balance of payments segment that encompasses the trade balance, net foreign income, and net current transfers.