Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is:

Dept.	Sales			Cost of Goods Sold					Direct Expenses					Indirect Expenses
1	$	1,080,000			$	708,000				$	102,000				$	88,000
2		480,000				158,000					48,000					108,000
3		780,000				308,000					158,000					28,000

Multiple Choice

• 56.7%

• 25.0%

• 34.7%

• 34.0%

• 61.6%

The B&T Company's production costs for May are: direct labor, $19,000; indirect labor, $7,100; direct materials, $15,600; property taxes on production facility, $860; factory heat, lights and power, $1,060; and insurance on plant and equipment, $260. B&T Company's factory overhead incurred for May is:

Multiple Choice

• $9,280.

• $43,880.

• $7,100.

• $2,180.

• $22,700.