Question

The Menswear Department of Nancy‘s Department Store had sales of $191,000, cost of goods sold of $134,000, indirect expenses of $13,550, and direct expenses of $27,800 for the current period. What is the Menswear Department's contribution to overhead as a percent of sales?

Answer 1

The contribution of overhead as percentage of sales will be found as follows:
Overheads=134000+13550+27800=$175350
Sales=$191000
thus the percentage of overheads will be:
overheads/sales
=175350/191000
=0.91806
=91.806%