Refer to the following

Ultimo Co operates three production departments as profit centers. The following information is available for its most recent year. Department is contribution to overhead as a percent of sales is: Cost of Dept. Sales Direct Indirect Goods Sold Expenses Expenses 1 $1,020,000 $702,000 $103,800 $ 82,000 2 420,000 152,000 42,000 102,000 3 720,000 302,000 152,000 22,000