Question

Multiple Choice Problems

Mach Co. operates three manufacturing departments as profitcenters. The following information is available for its most recentyear:

dept sales cost of good sold directexpenses indirect 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

6. Based on the above data, determine Department 1's netincome.

A. $120,000.
B. $200,000.
C. $300,000.
D. $220,000.
E. $0.

7. Which department has the greatest departmental contributionto 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.