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What the cost per cost driver rate would be

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Reference no: EM132776274

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

Problem 1: If advertising expense of? $456,000 is allocated on the basis of? sales, the cost per cost driver rate would be? ________.

A. ?$0.60
B. ?$1.20
C. ?$0.43
D. ?$0.40

Reference no: EM132776274

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