Answer the following questions using the information below:
Monster Vehicle Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.

-If administrative expense of $62,500 is allocated on the basis of number of employees, the amount allocated to the Truck Rental Department would be:

Question

Answer the following questions using the information below:
Monster Vehicle Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.
 
-If administrative expense of $62,500 is allocated on the basis of number of employees, the amount allocated to the Truck Rental Department would be:

Quizplus · Accepted Answer

The amount allocated to the Truck Rental Department is $15,625, which suggests that the allocation is based on a specific ratio or percentage of the total administrative expense of $62,500. Without additional information on the number of departments or the number of employees in each, the specific calculation method cannot be detailed, but the correct answer is derived from the given options.

Answer the Following Questions Using the Information Below