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2) For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could be used to distribute

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2) For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could be used to distribute it to the departments indicated. 1) Computer service expenses of production scheduling for operating departments. 2) General office department expenses of the operating departments. 3) Maintenance department expenses of the operating departments. 4) Electric utility expenses of all departments. 3) Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). Which department contributes the largest dollar amount to total overhead? Which contributes the highest percent (as a percent of sales)? Note: Pay close attention to this quick study. This formula is a skill I expect you to remember. Sales Cost of goods sold Gross profit Total direct expenses Contribution to overhead Contribution percent Dept. A $ 117,000 $ Dept. B 360,000 $ Dept. C 173,500 68,370 212,600 99,120 48,630 147,400 74,380 6,890 74,120 15,120

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