TB MC Qu. 22-128 (Algo) Ultimo Company operates three...

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	$ 2,600,000	$ 1,040,000	$ 1,820,000
Cost of goods sold	1,820,000	390,000	780,000
Direct expenses	260,000	104,000	390,000
Indirect expenses	208,000	260,000	52,000

Multiple Choice

• $546,000.

• $910,000.

• $26,000.

• $676,000.

• $390,000.