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Compute the cost per cost driver rate

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Reference no: EM132776032

Question - 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

880

410

Number of employees

105

50

Sales

?$760,000

?$380,000

If advertising expense of? $456,000 is allocated on the basis of? sales, compute the cost per cost driver rate?

A. ?$0.60

B. ?$1.20

C. ?$0.43

D. ?$0.40

Reference no: EM132776032

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