Solution-Compute the cost per cost driver rate

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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Compute the cost per cost driver rate

Reference no: EM132776032

Reference no: EM132776032

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