Answer the following questions using the information below:
Trustme Vehicle Rental Corporation has two departments,Car Rental and Truck Rental.Central costs may be allocated to the two departments in various ways.
$$\begin{array} { l r r }
& \text { Car Rental } & \text { Truck Rental } \
\text { Number of vehicles in fleet } & 700 & 300 \
\text { Number of employees } & 150 & 50 \
\text { Sales } & \$ 1500000 & \$ 750000
\end{array}$$
-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:
A)$200 000
B)$105 000
C)$150 000
D)$245 000

Question

Answer the following questions using the information below:
Trustme Vehicle Rental Corporation has two departments,Car Rental and Truck Rental.Central costs may be allocated to the two departments in various ways.
 $$\begin{array} { l r r } 
& \text { Car Rental } & \text { Truck Rental } \
\text { Number of vehicles in fleet } & 700 & 300 \
\text { Number of employees } & 150 & 50 \
\text { Sales } & \$ 1500000 & \$ 750000
\end{array}$$
-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:
A)$200 000
B)$105 000
C)$150 000
D)$245 000

Quizplus · Accepted Answer

Based on the information provided, we don't know the number of vehicles in each department's fleet. However, we do know that there are two departments: Car Rental and Truck Rental. Therefore, the facility lease expense of $350,000 should be divided equally between the two departments, resulting in an allocation of $175,000 for each department. Since we're looking for the amount allocated to the Truck Rental Department only, the answer would be $175,000 divided by 2, which equals $87,500. This is not one of the answer choices, so we need to look for the closest option. Option B, $105,000, is the closest to $87,500, so that would be the best choice.

Answer the Following Questions Using the Information Below: Trustme Vehicle

Answer the Following Questions Using the Information Below:
Trustme Vehicle