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Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated ...

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Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated ...

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 900 460
Number of employees 145 55
Sales $700,000 $390,000

If administrative expense of $62,800.00 is allocated on the basis of number of employees, the cost per cost driver rate would be ________.
A) $433.10
B) $314.00
C) $1,141.82
D) $46.18

Textbook

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

Read 114 times

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