Ultimo Company operates three production departments as profit centers. The following information is available for...
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Accounting
Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed?
| Department 1 | Department 2 | Department 3 | |
|---|---|---|---|
| Sales | $ 1,000,000 | $ 400,000 | $ 700,000 |
| Cost of goods sold | 700,000 | 150,000 | 300,000 |
| Direct expenses | 100,000 | 40,000 | 150,000 |
| Indirect expenses | 80,000 | 100,000 | 20,000 |
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