Answer the Following Questions Using the Information Below

question 96

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

• A)$37,500
• B)$62,500
• C)$46,875
• D)$15,625

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