Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed?

	Department 1	Department 2	Department 3
Sales	$ 1,070,000	$ 470,000	$ 770,000
Cost of goods sold	707,000	157,000	307,000
Direct expenses	107,000	47,000	157,000
Indirect expenses	87,000	107,000	27,000

Multiple Choice

Department 3; $463,000.

Department 3; $306,000.

Department 2; $107,000.

Department 2; $157,000.

Department 1; $1,070,000.