QS 24-4 Departmental contribution to overhead LO P3 Use the information in the following table to compute each department’s contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.)

QS 24-4 Departmental contribution to overhead LO P3

Use the information in the following table to compute each department’s contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.)

Explanation:

Departmental contribution to overhead
Dept. A:	$18,815 – $3,660 = $15,155
Dept. B:	$76,300 – $37,060 = $39,240
Dept. C:	$34,440 – $7,386 = $27,054

Departmental contribution to overhead (as a percent of sales)*
Dept. A:	$15,155 / $53,000 = 28.6%
Dept. B:	$39,240 / $180,000 = 21.8%
Dept. C:	$27,054 / $84,000 = 32.2%

*Rounded to one decimal place

Dept. B contributes the highest dollar amount to overhead.

Dept. C generates the highest contribution percentage to overhead.