The Following Data Are Available for the Cleaning Services Department

question 10

Essay

The following data are available for the Cleaning Services Department of Amitol Co.
$\begin{array}{lr}\text { Revenues } & \$ 216,000 \\\text { Cost of Sales } & 168,000 \\\text { Expenses: } & \\\quad \text { Supplies-Direct } & 12,000 \\\quad \text { Salaries-Indirect Allocated } & 34,000 \\\quad \text { Rent-Direct } & 8,000 \\\quad \text { Rent-Indirect Allocated } & 4,500\end{array}$
Required: Calculate departmental contribution to overhead for the Cleaning Services Department, including the department's contribution as a percentage of revenues.

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Definitions:

Defects

Imperfections or faults in a product or structure that may affect its usability, safety, or function.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time.

Bills of Exchange

Financial instruments where one party orders another to pay a fixed sum to a third party at a specified time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.