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Answer the Following Questions Using the Information Below:
Stark Corporation

Question 157

Multiple Choice

Answer the following questions using the information below:
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 850430 Number of employees 12575 Sales $750,000$375,000\begin{array}{lrr}&\text { Car Rental }&\text { Truck Rental }\\\text { Number of Vehicles in fleet } & 850 & 430 \\\text { Number of employees } & 125 & 75 \\\text { Sales } & \$ 750,000 & \$ 375,000\end{array}
-If advertising expense of $112,500 is allocated on the basis of sales,the cost per cost driver rate would be ________.


A) $0.15
B) $0.11
C) $0.10
D) $0.13

Correct Answer:

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