Mach Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is:
A) 8%.
B) 40%.
C) 20%.
D) 30%.
E) 12%.

Question

Quizplus · Accepted Answer

The contribution to overhead as a percent of sales can be calculated by dividing the overhead cost by the sales revenue and multiplying by 100. The information provided does not include this data for Department 1. Therefore, it is not possible to accurately determine the contribution to overhead as a percent of sales for Department 1.

Mach Co Operates Three Production Departments as Profit Centers