Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Department 2's contribution to overhead in dollars is:

	Department 1	Department 2	Department 3
Sales	$ 2,300,000	$ 920,000	$ 1,610,000
Cost of goods sold	1,610,000	345,000	690,000
Direct expenses	230,000	92,000	345,000
Indirect expenses	184,000	230,000	46,000

$483,000.

$805,000.

$23,000.

$598,000.

$345,000.

Answer rating: 100% (QA)

SOLUTION To determine Department 2s contribution to overhead we need to calculate the difference bet... View the full answer