Answer the Following Questions Using the Information Below

question 57

Multiple Choice

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 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)$105,000
• C)$200,000
• D)$150,000

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Definitions:

Accounting Period

A specific period of time used for financial reporting purposes, typically a fiscal year or quarter.

Wage and Tax Statement

A document provided by employers to employees detailing the employee's earnings and taxes withheld during the year; commonly referred to as a W-2 form.

Employee's Earnings Record

A detailed record maintained by employers that tracks the wages or salaries earned by each employee over time, including taxes and deductions.

Payroll Register

A document listing each employee’s pay details for each payroll period, including wages, deductions, and net pay.