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 Car Rental Department would be:
A)$245 000
B)$200 000
C)$150 000
D)$105 000

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 Car Rental Department would be:
A)$245 000
B)$200 000
C)$150 000
D)$105 000

Quizplus · Accepted Answer

The Car Rental Department likely has a larger portion of the fleet compared to other departments if it's allocated $245,000 out of a $350,000 expense, suggesting a proportional allocation based on the number of vehicles. This allocation method divides the total expense by the total number of vehicles to find a per-vehicle expense, which is then multiplied by the number of vehicles in each department. Without specific numbers of vehicles, the exact calculation can't be shown, but the choice indicates a significant portion of the fleet is attributed to the Car Rental Department.

Answer the Following Questions Using the Information Below: Trustme Vehicle

Answer the Following Questions Using the Information Below:
Trustme Vehicle