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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

  1. 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 $112,500 is allocated on the basis of sales, the cost per cost driver rate would be ___?

  1. $0.13
  2. $0.11
  3. $0.10
  4. $0.15
  5. None of the above

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