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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

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 $125,000 is allocated on the basis of sales, the amount allocated to the Car Rental Department would be ________.

A.

$83,333.33

B.

$85,467.33

C.

$86,666.67

D.

$87,777.67

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