Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departmen...
Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.
|
Car Rental |
Truck Rental |
|
|
Number of Vehicles in fleet |
850 |
430 |
|
Number of employees |
125 |
75 |
|
Sales |
$750,000 |
$375,000 |
If advertising expense of $125,000 is allocated on the basis of sales, the amount allocated to the Car Rental Department would be ________.
A.
$83,333.33
B.
$85,467.33
C.
$86,666.67
D.
$87,777.67
Homework Answers
| Advertising cost allocated to Car | ||||
| 125000*(750000/750000+375000) | ||||
| 125000*750/1125 | ||||
| 83333.33 | ||||
| answer) | option A | |||
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