Trustme Vehical Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated

Question:

Trustme Vehical Rental 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.........700........................300
Number of employees...............150..........................50
Sales...........................$1,500,000..................$750,000
a. If administrative expense of $125,000 is allocated on the basis of number of employees, the amount allocated to the truck rental department would be
b. If administrative expense of $125,000 is allocated on the basis of number of employees, the amount allocated to the car rental department would be
c. If advertising expense of $150,000 is allocated on the basis of sales, the amount allocated to the car rental department would be
d. If advertising expense of $225,000 is allocated on the basis of sales, the amount allocated to the truck rental department would be
e. If the facility lease expense of $350,000 is allocated on the basis of vehicles in the fleet, the amount allocated to the truck rental department would be
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

Question Posted: