We appreciate your visit to Stark Corporation has two departments Car Rental and Truck Rental Central costs may be allocated to the two departments in various ways Car Rental Number. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
Stark Corporation's facility lease expense which is allocated based on the number of vehicles per division would be approximately $132,164 for the Truck Rental Department. The closest option to this calculation is C. $132,174.
Explanation:
When distributing central costs among divisions of a company, a common method is to utilize a proportional base. In this case, Stark Corporation is using the number of vehicles in the fleet for that division as the base. Firstly, we need to determine the total number of vehicles in the fleet, which is 900 (for Car Rental) + 480 (for Truck Rental) = 1380 vehicles total.
Next, to find the percentage of total vehicles that represent the Truck Rental division, we divide the number of vehicles in the Truck Rental division by the total number of vehicles: 480 / 1380 ≈ 0.3478 or 34.78%. The facility lease expense to be allocated is $380,000, so we multiply this by the percentage calculated: $380,000 * 34.78% = $132,164.
So, if Stark Corporation allocates their facility lease expense based on the number of vehicles per division, approx $132,164 will be allocated to the Truck Rental Department. Therefore, the closest option is C. $132,174.
Learn more about Cost Allocation here:
https://brainly.com/question/34659373
#SPJ11
Thanks for taking the time to read Stark Corporation has two departments Car Rental and Truck Rental Central costs may be allocated to the two departments in various ways Car Rental Number. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
